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Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2016 Dear Sir

I would like to check if service tax is applicable for canteen run in hospital premises which is only for relatives of patients ..as our contract with the hospital we are suppose to pay Rs 10,000 per month, is service tax applicable to us ...before we use to pay only the rent amount for which reciept was given now they are asking for service tax ..please advice..if at all i am liable to pay how much is the tax , i guess previoulsy it was 12.5% now 14.5% Please also let me know if i can consult
Thank you

TARUN ARORA

TARUN ARORA (Expert)
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09 February 2016 There are two services in your case of which service tax liability can arise;

1. Renting of Space by hospital to you

2. Restaurant Service provided by you to other people

As far as 1st Situation is concerned the Hospital liable to charge Service Tax from you @ 14.5% since there is no exemption available.

Further in second case i.e. restaurant service if there no air conditioning or heating system in the rented place you are also not required to charge service tax @ 5.8%.

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