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Service tax payment on hotel room rent

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This query is : Resolved

Akash Kumar Rustagi (Querist)

09 May 2011 Pl answer my query is that.. if hotel room rent is RS.1500/- and after giving discount of Rs.600/- to the customer we received Rs.900/-. On which amount service tax should be calculated i.e on Rs.1500/- or on Rs.900/- the expert comment is solicited.

Pradeep Jain

Pradeep Jain (Expert)

09 May 2011 The service tax is applicable on room rent above Rs. 1000/- For computing the limit of Rs. 1000/- discount need not to be deducted. Hence, the service tax in this case is applicable. Once the service tax is applicable then the service tax is to be paid on gross amount charged i.e. on Rs. 900/- (coming after discount).

Akash Kumar Rustagi

Akash Kumar Rustagi (Querist)

09 May 2011 Thanks for early reply. My query resolved.
Thank u very much

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