Service accounting code for guest house with lunch facility

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 Hello Sir/Madam,

A company has a guest house in which it also provides food, if required by guests. The rent of the guest house ranges from Rs.1000 to Rs.5000 per day.

Please let me know:
Whether there will be a single Service Accounting Code or two separate Service Accounting Codes (one for accommodation and second for food) in the above case,

Thanks in advance.

RAJA P M

RAJA P M (Expert)
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24 July 2017 You can run single SAC

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 Thanks. I think in this particular case, the GST rate on food will depend on the tariff value of the room as it is the main service. What is your opinion?

RAJA P M

RAJA P M (Expert)
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24 July 2017 Yes. You are correct.
If a hotelier then its main service...

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 Sir, as I have mentioned in the first paragraph, the company is not a hotelier. Its main business is to manufacture exempt and taxable products. Guest house is not its business. So, does your last answer hold good in this case also?

RAJA P M

RAJA P M (Expert)
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24 July 2017 Sir... I know the company is mfg.

The food is main commodity to hotelier not for you....

You think and ask my opinion is foods is main for hotel business ( I think in this particular case, t he GST rate on food will depend on the tariff value of the room as it is the main service. What is your opinion?)

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 OK. Thanks.