Applicability of service tax on food supplied in hotel rooms

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Monika Rajani (Querist)
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09 July 2016 If a hotel providing accomodation services but not having any restaurant provides food in hotel rooms from its kitchen and the rooms are air conditioned and cost of food is not included in the declared tarrif, will it attract service tax or VAT?

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Guest

Guest (Expert)

09 July 2016 Service tax will be charged on food & not VAT.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2016 No service tax payable as the food is not served in AC restaurant.

Monika Rajani

Monika Rajani (Querist)
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09 July 2016 Will it attract VAT since food is being sold to customers staying in hotels ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 July 2016 Yes VAT applicable..............

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Advocate

Advocate (Expert)
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29 November 2016 UPVAT will be charged on food supplied to hotel rooms directly.
Service Tax will be charged on hotel tarrif if it exceeded Rs 1000 per room day as per Mega exemption notification no.25/2012 DT 20 June, 2012 of service tax.

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