Eligibility of service tax for hotel accomodation


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Querist : Anonymous

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Querist : Anonymous (Querist)
01 October 2013 Dear Sir/Madam,
I am starting a lodge business in hyderabad that provides only accomodation service. I am planning to put the following tariff i.e.

_______TYPE : PAX : NON AC : AC
SINGLE ROOM : 1 : 500 : 800
DOUBLE ROOM : 2 : 700 : 1000
MEGA FAMILY : 4 : 1200 : 1800
TOURIST ROOM: 5 : 1500 : 2100

The above rates are for per day tariff.
I have come to know that rooms above rs.1000/- per day comes under service tax . But is it rs.1000/- per day per person .... or just rs.1000/- per day. As you can see my per day per person tariff does not exceed 800/- . Kindly give me clarification regarding this.
Another query is about 10 lakh exemption of service tax. In this 10 lakh turnover to claim exemption, Is it 10lac turnover for only rs1000/- or above tariff rooms or should it include all the tariffs, i.e. rs.500/- , rs.700/-, rs.800/-.
Kindly give me a detailed clarification of service tax applicability of only hotel acomodation service. It would be a great help of you...

02 October 2013 It is on the basis of per room per day based on declared tariff.

The amount of room rent collected on the rooms where declared tariff is less than Rs. 1000/ per day per room is not to be included for calculated of exemption
****For clarification and Premier service pl contact group.blr@gmail.com

*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 October 2013 Mr. Jain ,
Thank you bery much for your reply.
So you are telling that if the annual turn over of my rooms whose declared tariff above rs.1000/- per day exceeds 10 lakhs then i am eligible for service tax?
Also i have stared my business in the month of august , 2013 and am already levying the states govt luxury tax from my customers and paying them to govt.
So how can i already know my annual turnover?
It would be great help if you resolve my queries. Have a nice day.


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