Dear sir,
My client have a hotel with 15 Rooms. 11 rooms are ordinary with tarrif below 1000/- and 4 rooms are deluxe rooms with tarriff above 1000/-. Will the service tax be applicable on all the rooms or only deluxe rooms. Further will the exemption limit of Rs. 10 lacs be applicable on tarriff received from deluxe rooms or on all the rooms.
Hi.......Ashwani
Notification in this regard is still in process. Service Tax shall be charged on the rooms which tarrif more than Rs.1000/- in your case you have to charge service tax on your 4 deluxe rooms only.
Exemption limit of Rs.10 lacs will be applicable on deluxe rooms only.
Thanks
Lalit
CAclubindia
Pro
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