Hotel rooms

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2015 We are starting a new Hotel and Boarding unit. We are having non A/c Veg Restaurant and A/c non veg Restaurant. We are charging Rs 800 and Rs. 1200 as room rent. How the Service Tax will be applicable to us and on which amount it is levied? Please guide me in this regard.

CA Robin Betala

CA Robin Betala (Expert)
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10 February 2015 Declared tariff of less then Rs 1000/- are exempt from Service tax and above Rs 1000/- is liable for service tax. However there is abatement on it of 40% on tariff above Rs 1000/-

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2015 So no need to pay service tax on rooms having rent of 800 right. i need to pay service tax on rooms having rent 1200 only know.