Classification

[VINOD SHARMA]

For a residential resorts together with air conditioned accomodation , restaurants , bars and banuet /meeting and public rooms , commercial space for the sale of merchandise , goods and servies , garage and parking space , and other facilities as are necessary for the operation of the resort . We would like to get the clarification that under which head the registration has to be taken . What are the input services on which we are eligible to take cenvat credit . Whether the cenvat is available on managment fees paid to the manager for managing the fees . Thanks

[YAGAY andSUN]

After going through the above query I feel that you may fall under the taxable category of "Service Provided by Air-Conditioned Resturants having licence to serve Alcoholic Beverages.  You may avail CENVAT credit on your input services. For example on Telephones, AC Maintenance, Manager's Fees etc.

 

[VINOD SHARMA]

In my view the service falls under two categories

(a) Services provided by Air Conditioned Restaurants .

(b) Services provided as short term accommodation .

Both the above services has been introduced through finance act 2011 . I think a stay has been granted for both the above services .

[KASTURI SETHI]

UPDATION

W.E.F. 1.7.12 under the category of "Bundled Services" Notification No.26/12-ST.

AI Summary

CENVAT credit eligibility for input services of bundled resort operations, including manager's fees and maintenance. Query: classification and CENVAT credit eligibility for a resort offering AC accommodation, restaurants, bars, banquet and ancillary facilities; replies indicate treatment under Services Provided by Air-Conditioned Restaurants and Short-Term Accommodation (Finance Act, 2011) and state CENVAT credit is available on input services such as telephones, AC maintenance and manager's fees. Update: from 1 July 2012 such offerings may fall within Bundled Services (Notification No.26/12-ST), which bears on classification and credit treatment.