Do mandap keeper service business needs to pay luxury tax?

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This query is : Resolved

Vijay Negi (Querist)

19 June 2014 Dear Sir/Madam,

I own a Mandap in Kotdwara, Uttarakhand.
It's new and rates are low so turnover will not exceed over Rs 8 Lacs in this financial year.
We are not offering catering services on our own.
Catering will either be managed by party themselves or by third party caterer.

Also, We are not offering special rooms. One room for bride and one for relatives are offered and both of them are complimentary with mandap booking, no extra charge for these rooms.

So do I need to register for Service Tax?
OR Should I register in Sales Tax?
One of local account person suggests me to register in Sales Tax because my business lies in category of Luxury Tax. He also claims that all wedding point owner in that area are registered with Sales Tax and paying luxury taxes.

Kindly suggest, In which category my business lies?
Any prompt suggestion will be highly appreciated.
Thanks in advance

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

24 July 2014 Giving Mandap on hiring is not chargeable under VAT,but liable ST.You have to register and pay ST @12.36%,if the receipts exceed Rs10 lakhs in a year. It is not a luxury tax item in any state.....mjk

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