service tax liability of five star hotel
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 December 2009
I have observed that some of the hotel were charging VAT 12.5% and Service tax @ 10.30% on basic cost of food as mentioned below:
Example:
Lunch costs 36000
Add: VAT 12.5% on Rs.36000 4500
Add: Service tax 10.30% on
Rs.36000/- 3708
----------
Grand total 44208
--------
I have a doubt whether both VAT and service tax is payable on basic costs.
Please clarify whether the above method of charging service tax is correct.
thanks & regards
T. Saravanakumar
I have observed that some of the hotel were charging VAT 12.5% and Service tax @ 10.30% on basic cost of food as mentioned below:
Example:
Lunch costs 36000
Add: VAT 12.5% on Rs.36000 4500
Add: Service tax 10.30% on
Rs.36000/- 3708
----------
Grand total 44208
--------
I have a doubt whether both VAT and service tax is payable on basic costs.
Please clarify whether the above method of charging service tax is correct.
thanks & regards
T. Saravanakumar
22 December 2009
as per my knowledge, only one is applicable. if you stay in the hotel then service tax will be applicable.
22 December 2009
Renting of room/banquates added as 91a in a schedual of service tax from 2007-08.Hence service tax applicable on such receipts.
(2) Indoor catering is exempted from service tax/but vat is applicable.
(2) Indoor catering is exempted from service tax/but vat is applicable.
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