SERVICE TAX NOTIFICATION NO

[somnath jana]

Pl sent service tax rate chart 2012-13 and notification no. (w.e.f) on hall charges in hotel & rastaurant . before and after july,2012

AI Summary

Clarification on 2012-13 Service Tax for Air-Conditioned Restaurants and Short-Term Hotel Stays Under Budget 2011 Rules A query was raised regarding the service tax rate chart for 2012-13 and notifications on hall charges in hotels and restaurants. The response clarified that service tax on restaurants and hotels was introduced in Budget 2011, effective from May 1, 2011. Restaurants with air-conditioning and a license to serve alcohol are taxable, excluding home delivery and food pick-up services. Short-term accommodation services are taxable if the stay is less than three months, with exemptions for tariffs under Rs. 1,000 per day. Service tax is levied on 30% or 50% of the gross amount, depending on Cenvat Credit usage.