regn. exemption limit for

[sunil mehta]

New 'accomodation services' has become effective from 01/05/2011. Small to medium hotels provide some of their rooms  with 'declared tariff ' of Rs. 1000/- and above and some rooms below Rs.1000/-.i.e same hotel offers  two different  'published tariffs ' for different class of rooms.

 Facts:-

1)New service tax registration is due when ..'aggregate value of taxable service in a financial year exceeds  rs. 9 lacs ' (notfn. no. 26/2005 dt.07/06/2005.

Now ,'aggregate value....service ' means the sum total of first consecutive payments received during the financial year towards the gross amount..................but does not include payments received towards such gross amount which are exempt from thewhole of service tax leviable thereon under section. 66 of the said  Finance Act under any notification other than Notification No. 6/2005-Service Tax, dated the 1st March, 2005 .  '

Assuming that the service provider does not provide any other taxable service-

Query 1)Whether , for the purpose of Registration , taxable turnover would include 'declared tariff less than Rs.1000/- also ?

Query 2) Whether , for the purpose of paying service tax when service provider crosses Rs.10 lacs limit , the sum total of first consecutive payments recd. during the Fin. Year  would include both 'published tariff less than Rs.1000/- & 'published tariff of Rs. 1000/-or more ' ?or only 'published tariff of = or > rs.1000/- ? ( notfn. no. 8/2008 dt.01/04/2008 ) 

[Pl. see explanation B of notfn. 8/2008 dt.01/04/2008 ]

Pl. clarify (1) and (2) 

AI Summary

Hotels with Rooms Below 1000 Tariff Exempt from Service Tax Registration per Notification No. 31/2011 ST A query was raised regarding service tax registration and payment for hotels offering rooms with different tariffs. The issue concerned whether rooms with a declared tariff of less than Rs. 1000 should be included in the taxable turnover for registration and service tax payment. The response clarified that for registration purposes, payments for rooms with tariffs under Rs. 1000 are exempt due to Notification No. 31/2011 ST. For service tax payment, once the Rs. 10 lakh threshold is crossed, only payments for rooms with tariffs of Rs. 1000 or more should be included.