hotels.

Save Share

This query is : Resolved

DHAVAL BHOJANI (Querist)

13 May 2009 In hotels we will have to charge the luxury tax on room rent. So service tax would be taken on gross amt.? Simlarly the vat on f&B sales is taken and service tax is taken on gross amt.? During construction the bill I pay attracts Excise payment and service tax element. so can i take input credit of both (i.e. excise and service tax element). In how many years I can take input credit(i.e. of service tax and excise).? Please guide I am juggling between statues...

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)

13 May 2009 1.Renting of rooms in a hotel do not attract service tax.
2.You query is not clear why should charge service tax on food & beverage sale?
3. If you want to take CENVAT credit of central excise duty paid on inputs and service tax paid on input services then you are not allowed to avail the exemption of 67% or exemption under notification no 12/2003-ST
4. There is no time limit for utilising //cenvat credit.

DHAVAL BHOJANI

DHAVAL BHOJANI (Querist)

14 May 2009 thanks...Mr. SS Roy. what is this exemption of 67%.? can u elaborate more...

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)

19 May 2009 Every service provider providing "commercial and industrial construction" service has been granted exemption of 67% of gross value of taxable services vide Notfn No 15/2004 dt 10.09.2004 subject to the following conditions.
(i) CENVAT credit on capital goods, inputs and input services have not been taken.
(ii) Benefit of Notfn No12/2003-ST has not been taken
(iii) the taxable services provided are not only completion and finishing services in relation to building or civil structure.

DHAVAL BHOJANI

DHAVAL BHOJANI (Querist)

19 May 2009 thanku sir..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now