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Discussion > Service Tax > Queries >

service tax with luxury tax

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student - article

[ Scorecard : 45]
Posted On 18 June 2009 at 13:11 Report Abuse

I am confused on how do i calculate service tax liability for the client as follows:

He is dealing in providing to people homestays and have got the same leased or on contract basis from other people (only one homestay has more than five rooms and others do not).

As per Kerala Luxuries Tax Act, luxury tax is applicable for homestays exceeding five rooms.

Also service tax is applicable to all the homestays. but the firm has neither got registered for service tax nor for luxury tax.

I want to calculate the service tax and luxury tax liability and also i want to know the rates for the same.

Can someone please help me?



Madhukar N Hiregange
Chartered Accountant

[ Scorecard : 14939]
Posted On 18 June 2009 at 16:49

I do not know about luxury tax but service tax does not seem attarcted for homestays. Can you let me know under which head/ catgeory they think that they maybe coverfed.




priya
student - article

[ Scorecard : 45]
Posted On 19 June 2009 at 09:33

you can consider them under the category of tour operators,.....room reserving...


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