Service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 March 2013
Any expert,
A hotel is charging customer for stay. Besides of room charges they are charging for Telephone, Dhobi Charges, Car charges and over all service charges of certain percentage of room rates. Whether service tax is leviable for all of the above or partly. If it is partly on which items ? Please let me know.
A hotel is charging customer for stay. Besides of room charges they are charging for Telephone, Dhobi Charges, Car charges and over all service charges of certain percentage of room rates. Whether service tax is leviable for all of the above or partly. If it is partly on which items ? Please let me know.
CA Priti Surana
(Expert)
13 March 2013
Value on which service tax is chargeable, in case of bundled services, should be decided on the essential character of the bundle of services. A hotel providing all mentioned services is proving a bundle of services, but hotel accomodation is the essential character of the bundle of services. Therefore, the rate applicable to hotel accomodation will apply. Now where in a bundle of service, none of the component is able to decide the essential character, it will be justifiable to charge different rates of service tax.
CA Priti Surana
(Expert)
13 March 2013
Value on which service tax is chargeable, in case of bundled services, should be decided on the essential character of the bundle of services. A hotel providing all mentioned services is proving a bundle of services, but hotel accomodation is the essential character of the bundle of services. Therefore, the rate applicable to hotel accomodation will apply. Now where in a bundle of service, none of the component is able to decide the essential character, it will be justifiable to charge different rates of service tax.
UMESH KUMAR PANDEY
(Expert)
13 March 2013
Dear,
As per our practice all services of Hotels are taxable which are mentioned in the bill like ,room rent ,telephone,dhobi & all others services will be taxable and the Service tax will be charged on the total taxable bill amount.
As per our practice all services of Hotels are taxable which are mentioned in the bill like ,room rent ,telephone,dhobi & all others services will be taxable and the Service tax will be charged on the total taxable bill amount.
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