Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2010 Whether service tax is liable to be charged by the hotels on telephone facility provided to guests.

Such as
STD call rate Rs.12/-per minute .
is it liable to service tax

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 June 2010 Telephone facilty by the telecommunications company only covered ST. So in your case no ST is applicable this is one type of reimbursement of your actual expenses only

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2010 But we are charging higher amount .
Our cost Rs. 1/- per minute
but we charge Rs. 24/- per minute for STD calls & Rs. 12/- per minute for Local calls .
IS now Service tax applicable .

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 June 2010 For charging Service tax on telephone bills you should be a telecmmounications operator approved by Govt. your case it is one source of hotel income only. your case not covered any of taxable services

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Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2010 ok Thanks ..!!

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