Guest house providing room renting service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2013 we are in hotelling business, our per day tariff is 15000 per month I.e. 500 per day effectively, our
turnover for f.y. 2012-13 is more than 10 lakh, so, exemption notification issued in july 2012 under
service tax will be applicable to me? and if yes should I take registration and then claim exemption
in that or not required to take registration?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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16 April 2013 notification 25/2012 point no. 18
if declared tariff of a unit of accommodation below Rs 1000 per day. that is exempt from service tax.
when you providing exempt service, no need for registration.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2013 Sir will I get basic exemption of Rs.10 lakh

CA Vikas Acharya

CA Vikas Acharya (Expert)
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17 April 2013 basic exemption is allowed when there is taxable service.
when no taxable service, what you will do with the exemption, ultimately neither registered required nor registration, till this limit of Rs 1000/day changes.

there's rule in law:
exemption can be given to something taxable

The basic is allowed when also you providing some other taxable service, also in case that you need to get registered when after Rs 9 lakhs and liable to pay tax after 10 lakhs.

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