sumitG (entrepreneur) (80 Points)
06 June 2011
incase of service tax for hotels. the hotel is supposed to pay service tax if the room tariff is more than Rs1000. however my question is if the hotel charges lets say Rs2000 but this amount includes the meals(eg breakfast), in that case what will be the amount at which the hotel should charge service tax as Rs2000 is for both room tariff and meals.
Kindly send your replies ASAP.
Saurabh Mittal
(CA Final Ambala Cantt)
(39 Points)
Replied 13 June 2011
Sale of goods and provide of Service is different thing if we provide the sale i.e Provide the Breakfast Lunch Dinner than pay sales tax on that amount because of that amounted to sale and if we provide the services that are linked with Room Rent than the service tax pain on that amount
For Example
Room Rent 1000
Food Beverages 1000
Vat on Food And Beverage
Service tax on Room Rent
Note: On Room Rent Generally Service tax not payable but luxury tax is payable
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