Hostel Services

[Asked by Guest]

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?

[YAGAY and SUN]

This needs to be checked under the provisions of Negative list and Mega Notiification. Since there is no clear cut exemption, such services may attract levy of service tax.

Dear Pradeep Sir

Thanx for ur reply. I want to draw ur attention to the mega notification no-18 which says

Services by way of renting of a hotel, inn, guest house, club, campsite or othercommercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;So does not the hostel fall under this exemption?

[YAGAY and SUN]

Do you publish Tariff in this regard or declared that tariff of a unit of accommodation below rupees one thousand per day or equivalent?

Dear Sir

Our tariffs are maximum 5000 per person per month. We provide accomodation for 2-3 persons per room.

Thanx

[YAGAY and SUN]

It mean you don't have published tariff.

Anyhow, you may take the shelter of this exemption. 

[SUNIL & KALPANA SINGH TOMAR]

Dear Pradeep ji,

Please advise duty structure on the Bath Rug / Floor Rug/Mat of hand made cottons under CE Tariff 57050042 duty charging 2% (without Cenvat u/notfn no.1/2011) but  some people saying your item not cover in 2% you give 12% duty immediately.

So pls advise .

Amita

AI Summary

Service tax exemption for low-tariff accommodation may apply but published tariff requirement is decisive for hostels.
Query concerns whether hostel accommodation with mess and separate repair/electrical services attract service tax. The Mega Notification exemption for renting accommodation depends on a declared/published tariff below the specified per day threshold; absence of a published declared tariff undermines reliance on that exemption. Separate low value repair services may be aggregated with accommodation receipts for threshold calculations, possibly rendering the combined services taxable.