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Service tax on hotels - urgent please help

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16 February 2013 Sir/ Madame

A hotel is charging rooms at Rs 800 per day and charges for food and beverages at Rs 300 per day. Their turnover is more than 10 lakhs.

Would they be liable to service tax? At what rate?

Thank you
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CA Himanshu Kansal

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CA Himanshu Kansal (Expert)
16 February 2013 here if the turnover of the hotel is more than Rs. 10 lacs than, they should charge service tax @ 12.36%. also read the below mentioned exemptions:
a) notification no. 1/2006-ST, dated 01/03/2006 read with notification no. 34/2001-ST dated 25/04/2011, exemption of 50% of gross value charged have been provided for this service on the condition that no cenvat credit is availed either on inputs or inputs services.
b) Notification no. 31/20011-ST dated 25/04/2011, exempts when declared tariff for providing such accommodation is less than Rs. 1000.
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