Hello Sir,
I have two queries
1. Whether service tax applicable on dine in or dine out service in hotel.
2. What is Bundle services. We are selling room with breakfast fascility. Should be paid service tax under accomodation service@ 7.61 or in Bundle service @ 8.65.
Thanks,
Clarification on Service Tax: 40% on Dine-In, 8.65% on Bundled Services, Increasing to 9.8% from June 2015. An individual inquired about service tax applicability on dine-in and dine-out services in hotels and the concept of bundled services, particularly when selling rooms with breakfast. A respondent clarified that service tax applies to 40% of dine-in charges, while dine-out generally lacks a service element, though many restaurants still charge it. Bundled services combine multiple service elements, and the applicable service tax was 8.65%, increasing to 9.8% from June 1, 2015. The inquirer considered issuing separate invoices for accommodation and restaurant services for tax planning, but the respondent advised against it, as it would not constitute a bundled service. (AI Summary)
Service Tax
TaxTMI 
TaxTMI 
