Service tax on food supply in rooms

Service Tax (Legacy) 854 views 4 replies

Is supply of food in Rooms of Hotel chargeable to Service Tax ? If yes than how the value of service portion be ascertained ? Hoping for positive response.

Replies (4)

yes, at the rate of 4.944 percent i.e. 40% of 12.36%..............it will charged of the total bill .....

But Ravinder Restaurant service defines Taxable Service  as ''service provided or to be provided to any person by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in it premises.''  Also Circular no. 173/8/2013-ST clarifies that services provided by a specified restaurant in other areas e.g. swimming pool or an open area attached to the restaurant, are taxable. It does not mention about room service in food. Please justify ur answer.

 

read list of declared services relating supply of food, drinks (catering contract).........it says goods being food, drink, etc. supllied in any manner.........if it is indoor (in your case room service) 60 % abatement is available..............

But sir as per circular no. 139/8/11-TRU, Supply of food in hotel room is not liable for service tax.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details