Service tax on room service in resorts
Querist : Anonymous
Is service tax applicable on food served in rooms having air condition facility?
My query is
Is service tax applicable on in room dinning
Querist : Anonymous
But my query is
is service tax applicable on in room dinning?
Here’s why:
* The entire hospitality service provided by the resort, including food served in the restaurant or delivered to rooms (in-room dining), falls under the category of **“restaurant services”** or **“food and beverage services.”**
* The service tax is levied on the value of food served, whether it is consumed in the restaurant premises or served to guests in their rooms.
* The rate is usually **subject to abatement**, meaning the effective service tax rate on food and beverages in hotels or resorts is lower (typically around 6.5% after abatement), but the tax definitely applies.
* The presence or absence of air conditioning in the room or restaurant may affect the tax rate or applicability on certain services, but for in-room dining, **service tax is applicable regardless**.
So, if your resort provides food to guests in their rooms, you should charge and pay service tax on that service.
If you want, I can help you with the exact service tax calculation or how to record this in your accounts. Would that help?
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