Sir
My father is running a hostel with mess facility. Is this service taxable? or will be covered under exeption.
He also give services regarding Repairing & Electrical Fitting. This service falls much below than the threshold limit but alongwith hostel service it crosses the threshold limit.
What would be the treatment of both the services?
Do we need to pay Service Tax?
Tax Implications for Hostel Services: Check Negative List, Mega Notification, and Exemption for Low-Tariff Accommodations. Handmade Rug Duty Inquiry. A forum user inquired about the tax implications of running a hostel with a mess facility, along with additional services like repairing and electrical fitting, which collectively exceed the threshold limit for service tax. A respondent suggested checking the provisions of the Negative List and Mega Notification, indicating that such services might be taxable. The inquirer referenced a specific notification suggesting an exemption for accommodations with tariffs below a certain amount, stating their hostel charges 5000 per person per month. Another participant sought advice on duty structure for handmade cotton rugs, questioning the applicable duty rate. (AI Summary)
TaxTMI 
TaxTMI 
