Service tax on renting of hotels, inn, guest house

[Ramesh Agarwal]

Whether Service tax is charged on declared tariff or on discounted bill. e.g. declared tariff is 1500/- and after discount suppose it comes to Rs.850/- . on which service tax should be charged.

 

AI Summary

Service Tax for Hotels: Charge Based on Discounted Rate, Not Published Tariff as Clarified by Respondents A discussion on a forum addressed whether service tax for renting hotels, inns, or guest houses should be charged on the declared tariff or the discounted bill. The issue was clarified by two respondents who agreed that service tax should be applied to the actual room rent, which is the discounted rate, rather than the published tariff.