Declared Tarriff of Hotel is Rs 990 and annual turnover is Rs 1900000.
Is the Hotel Liable to charge/pay service tax ..?
4 Replies
Pragya
(CHARTERED ACCOUNTANT)
(104 Points)
Replied 23 January 2016
No, Since declared tariff is below rs. 1000/- hotel is covered under mega exemption notification. No service tax is payable.
Neel Sharma
(5 Points)
Replied 23 January 2016
Thank you very much
Also could you refer the clause in which it is stated under the Service tax Act.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 23 January 2016
It is as per mega exemption notification no.25/2012
https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st25-2012
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 24 January 2016
It is stated in clause 18 of the mega exemption notification i.e. notification 25/2012.
The said clause states as under:
"Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent;"
Regards,
Ravi Kumar Somani
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