On hotel and lodging business

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FAHEEM ANSARI (Querist)

20 March 2013 1) MY CLIENT HAS HOTEL BUSINESS WHICH IS ON RENT ( I.E HE HAS TAKEN THE HOTEL ON RENT) IS RS 1000/- EXEMPTION LIMIT IS APPLICABLE TO HIM OR NOT?
2)IS 60%-40% RULE APPLICABLE TO HIM?
3)CAN HE TAKE CENVAT CREDIT ON PROFESSIONAL FEES AND RENT PAID BY HIM????
4)please advice what exactly should be done.

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)

21 March 2013 1. SERVICE TAX IS APPLICABLE ON ROOM RENT OF HOTEL ON RS.

1000/= OR ABOVE PER DAY.
2. SERVICE TAX WILL BE CALCULATED ON 60% OF TOTAL

AMOUNT OF RENT W.E.F. 01.07.12 AND IT WAS 50% BEFORE

01.07.12.
3. ABETEMENT OF 40% IS ONLY GIVEN BY THE GOVT., IF CENVAT

FACILITY IS NOT TAKEN BY THE ASSESSEE. HENCE, CENVAT IS

NOT ALLOWED IN ABOVE PERCENTAGES.
4. THE RATE OF SERVICE TAX AT PRESENT IS 12.36%

Please click on "Thank User", If you are satisfied with my reply,

Thanks.
Rajeev Kumar Garg
(M.Com, L.L.B.)
Consultant (Excise, Customs & Service Tax)
Ph. no. +91 7500802402

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