Cenvat credit

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CHANDRAJEET KUMAR JHA (Querist)
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17 September 2011 We are in Catering Business, we are running a Motel & we are registered for the following Services:
1. Mandap Keeper
2. Outdoor Catering Service

We are paying rent with Service Tax for the Motel.The Service Tax liability on Catering Business is approx. 01 Lac per month where Input Tax on Rent is approx. Rs.2.50 Lac per Month. Can we avail cenvat of the same.Please suggest entry

U S Sharma

U S Sharma (Expert)
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17 September 2011 Short-term Accommodation service – In accordance with the budget announcement, the levy will be applicable on short-term accommodation with a declared tariff of Rs.1000 per day or above. A suitable exemption has been given below this amount vide Notification No. 31/2011-ST dated 25/04/2011. Declared tariff has been defined within the notification as charges for all amenities provided in the unit of accommodation. Thus it will include cost of all electronic gadgets installed in the room and any other facility normally provided by a hotel as part of the stay. Cost of extra bed will not form a part of the declared tariff. No further exclusions are provided from the declared tariff e.g. on account of breakfast or any other meal whose cost is included in the declared tariff including any discount given to the customs. However an exemption @ 50% has been given by amending the Notification No. 1/2006-ST dated 01/03/2006 vide Notification No. 34/2011-ST, dated 25/04/2011 provided no cenvat credit is availed either of inputs or inputs service.
(As per vide M. F. (D.R.) letter F. No. 334/3/2011-TRU, dated 25/04/2001)

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