Is service tax applicable....?
This query is : Resolved
kaushik halai
(Querist)
08 February 2016
Suppose certain charges are imposed on cancellation of rooms booked in hotel.In that case is Service Tax applicable or not?
CA R SEETHARAMAN
(Expert)
08 February 2016
Service tax applicable on such charges being not covered under negative list.
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kaushik halai
(Querist)
08 February 2016
even if service is not rendered
service tax should levy on cancellation charges...?
TARUN ARORA
(Expert)
08 February 2016
Dear Mr Kaushik,
As per definition of Service in clause 44 of Sec 65B all types of activities are services.
Further “agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;” is a Declared Service under clause e of Sec 66E of the Finance Act.
And in your case that activity will be covered under “tolerate an act or situation”.
As per definition of Service in clause 44 of Sec 65B all types of activities are services.
Further “agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;” is a Declared Service under clause e of Sec 66E of the Finance Act.
And in your case that activity will be covered under “tolerate an act or situation”.
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kaushik halai
(Querist)
11 February 2016
i can't understand provision of act,
should service tax levy or not..?
CA R SEETHARAMAN
(Expert)
11 February 2016
Service tax will be levied on such charges.
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