Service tax in respect of in-room service/dining in hotel
This query is : Resolved
07 October 2013
My query is if abatement of 60% is available in respect of In-Room Service/Dining in Hotel Industry.
It was clarified in Circular 139/8/2011 – TRU dated 10 May 2011 (https://www.servicetax.gov.in/circular/st-circular11/st-circ-139-2k11.htm) that food served in a room would not be liable to Service Tax under “accommodation services” or “restaurant services.” Hence as per clarification, In room service cannot be considered as restaurant service.
Taking this into consideration and applicability of negative list,in the current scenario and in my opinion abatement should not be available in respect of food served in a room and service tax should be charged @ 12.36% and not 4.944%.
I invite your views in this regard.
It was clarified in Circular 139/8/2011 – TRU dated 10 May 2011 (https://www.servicetax.gov.in/circular/st-circular11/st-circ-139-2k11.htm) that food served in a room would not be liable to Service Tax under “accommodation services” or “restaurant services.” Hence as per clarification, In room service cannot be considered as restaurant service.
Taking this into consideration and applicability of negative list,in the current scenario and in my opinion abatement should not be available in respect of food served in a room and service tax should be charged @ 12.36% and not 4.944%.
I invite your views in this regard.
21 October 2013
Seems your understanding is correct.
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