In case of Hotel accomodation services ,please tell the effective date for applicability of redused abatement from 50 % to 40 %
CA. Rachna Parashar (partner) (196 Points)
15 May 2012In case of Hotel accomodation services ,please tell the effective date for applicability of redused abatement from 50 % to 40 %
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 15 May 2012
there is no any notification about reduse in abatement from 50% to 40% yet,
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 15 May 2012
Reduce to abatment is just a proposal and has not been made effective.
CA. Rachna Parashar
(partner)
(196 Points)
Replied 15 May 2012
In the current budget certain notifications has been issued.As per notification no. 13/2012-st there is abatement of 40% on renting of hotels, clubs, campsites or commercial places meant for residencial or lodging purpose. So when this notification be applicable, as it is written in notification that this notification shall come in force from the date on which section 66B of the Finance act, 1994 comes into effect.
CA Ganesh Karthik
(Chartered Accountant)
(368 Points)
Replied 15 May 2012
The notification will come into effect only after the Finance Bill receives the assent of the President, i.e. the date of enactment of the Finance Bill..
CA Sanjay Kumar
(Partner)
(63 Points)
Replied 19 May 2012
Current abatememt on Hotel-Room Rent having Tariff of Rs.1000/- and abobe is 50% i.e Service tax rate is 6.18% with effect from 1st April 2012, but proposed abatement (reduced) in union Budget 2012-12 is 40% i.e 7.416%(would not be effective till the date Finance Bill 2012 is passed)
CAclubindia
