Service tax on room service in resorts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2014 The resort falls under the service tax act and food served in the restaurants is charged service tax at abated rate.
Is service tax applicable on food served in rooms having air condition facility?

My query is

Is service tax applicable on in room dinning

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 December 2014 the ans is yes now whether ac is there or not service tax is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2014 Thank you!

But my query is

is service tax applicable on in room dinning?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Yes, **service tax is applicable on in-room dining** in resorts.

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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