TaxTMI 
TaxTMI 
TaxTMI 
Clarification regarding Short Term Accommodation Service and Restaurant Service
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....), Director General (Service Tax), Director General (Central Excise Intelligence), Director General (Audit), Commissioners of Service Tax (All) Commissioners of Central Excise (All) Commissioners of Central Excise and Customs (All). Madam/Sir, Subject: Short Term Accommodation Service and Restaurant Service- clarification -regarding Since the levy of service tax on the two new services r....
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....However, the actual tax will be liable to be paid on the amount charged i.e. declared tariff minus any discount offered. Thus if the declared tariff is Rs 1100/-, but actual room rent charged is Rs 800/-, tax will be required to be paid @ 5% on Rs 800/-. 2. Is it possible to levy separate tariff for the same accommodation in respect of corporate/privileged customers and other normal customers. ....
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.... Service Tax shall be only on the declared tariff for the accommodation where the published/printed tariff is above Rupees 1000/-. However, the revision in tariff should be made uniformly applicable to all customers and declared when such change takes place. 5. Is the luxury tax imposed by States required to be included for the purpose of determining either the declared tariff or the actual room....
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.... liable to service tax. 2. Will the services provided by taxable restaurant in other parts of the hotel e.g. swimming pool, or an open area attached to a restaurant be also liable to Service Tax. The taxable services provided by a restaurant in other parts of the hotel e.g. swimming pool, or an open area attached to the restaurant are also liable to Service Tax as these areas become extensions ....