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of <h1>India Amends Service Tax: New Categories for AC Restaurants and Short-Stay Accommodations Effective May 1, 2011</h1> The Government of India has issued Notification No. 34/2011 under the Finance Act, 1994, amending Notification No. 1/2006-Service Tax. Effective from May 1, 2011, the amendments introduce new service tax categories. Service tax will apply to air-conditioned restaurants licensed to serve alcoholic beverages for serving food or beverages, including alcohol, with a tax rate of 30%. Additionally, service tax at 50% will apply to accommodation services provided by hotels, inns, guest houses, clubs, or campsites for stays of less than three months. These changes aim to regulate service tax in the hospitality sector.
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