SERVICE TAX FOR ROOM SERVICES IN THE HOTEL INDUSTRY

[V Prasad]

1) Please mention the service tax applicability on room services in the hotel industry from 2012-17. Is service tax exempted on room services for these years?

2) How is service tax calculated for room tariffs if discount is offered to the customer? Should we calculate service tax sans discount?

Thank You

[DR.MARIAPPAN GOVINDARAJAN]

Whether catering services are there?

[V Prasad]

Sir,

Thank you for the response. There are no catering services, only room supplies from the common kitchen.

Thank you

AI Summary

Service tax applicability on hotel room services and valuation where discounts are given, contingent on catering inclusion. Service tax applicability on hotel room services depends on classification of the supply and whether catering services are present; room supplies from a common kitchen without catering may affect taxable status. Valuation when discounts are offered raises whether tax is calculated on gross tariff or on the discounted amount, requiring application of service tax valuation rules and any relevant exemptions.