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.

 

Service Tax is charged on the actual room rent i.e. discounted rate and not on published tarriff.

 

Saji

[dipsang vadhel]

Serviec tax on amount chrged (after discount).

AI Summary

Service tax on hotel room rental applies to the actual charged rent, not the published tariff.
Service tax on renting of hotels, inns or guest houses is levied on the actual room rent charged to the customer (the discounted rate) rather than on the published or declared tariff; the taxable value is the consideration received after discounts.