Lodging rents and service tax liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2016 Dear experts on Service Tax,
A lodge has 20 rooms out of which 6 rooms are AC and 14 rooms are NON-AC.
The room rent for Standard Non AC is Rs.950/- plus Luxury tax of 5% which comes to Rs.998/- per day.
The Deluxe AC Room rent per day is Rs.1400/- plus Luxury Tax @5% which comes to Rs.1470/- per day.
As per Service Tax Act, if the room rent of a lodge/inn is below Rs.1,000/- per day, including all amenities, it is exempt from service tax.
My question is whether the assessee is liable to SERVICE TAX, if the following conditions prevail:
a) The Gross Room rents per annum from Standard Rooms ( below Rs.1000/-per day ) is above Rs.900000/- per annum.( The minimum limit for ST Registration)
b) The Gross Room rents from Deluxe Rooms (Above Rs1000/-) is above Rs.900000/. If we get registered under ST., shall we have to pay ST on room rents of Standard ( Which is below Rs.1,000/- per day)
c) The Gross rents from both the Standard- Deluxe exceed Rs.10,00,000/- per annum- but neither of each class do not exceed Rs.9,00,000/-. Whether Registration or ST is applicable?
Please clarify the status of service tax liability for the above three conditions.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 May 2016 a) Not liable for service tax and registration.
b) No need to pay service tax on room rent of standard.
c) No need for registration and ST payment.

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