service tax in hotel

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Jitendra Hirpara (Querist)
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09 December 2016 my hotel bill is 614rs including service tax of rs 34.40 and I will pay this bill through credit card. my query is why hotel take service tax below 2000rs which payment done by digital? as per notification of finance minister that no service tax below 2000 with digital payment.

CA Suresh Jain

CA Suresh Jain (Expert)
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09 December 2016 Service Tax on service received by you has nothing to do with mode of payment. The service tax on service charges payable by the service provider (in this case Hotel) to the bank is exempted.

Advocate

Advocate (Expert)
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10 December 2016 Dear Jitendra...suppose you have debit/credit card of HDFC BANK.Government had announced not charging service tax up ON THAT SERVICE ONLY BY WHICH YOU ARE PAYING DIGITALY i.e.HDFC BANK WILL NOT CHARGED ANY SERVICE TAX IF YOU ARE DOING ANY PAYMENT UPTO RS 2000 ONLY means NO SERVICE TAX WILL BE CHARGED.
Remember, only that amount of service tax that related to availing service by Debit/Credit card service provider company.

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