Notification No.31/2011-ST and 34/2011-ST, dated April 25, 2

Hi, Experts

Kindly resolve my doubts in service tax under Notification No.31/2011-ST and 34/2011-ST, dated April 25, 2011.

1. Our turnover from hotel accommodation for the year 2010-11 is more than 10 lakhs, but turover arrived from declared room tariff Rs.1000.00 and above per day is less than exemption limit of Rs.10 lakshs so, is it necessary to register and collect service tax immediately i.e w.e.f 01.05.11 or can we wait for new registration till the taxable turnover reaches exemption limit of Rs.10 lakhs.

2. Since abatement of 50% is given, can we consider only the taxable turnover to arrive the 10 lakhs exemption limit?

3. Whether the collection of service tax is applicable for both a/c and non-a/c rooms having tariff more than Rs.1000.00 per day.

4. Can we register and start charging service tax based on the turnover for the year 2011-12, i.e after 31.03.2012.

With thanks in advance.

sree

1. You have to register with S.tax authorities even if your turnover crosses 9lakhs and charge and collect service tax when you cross the limit of Rs.10L. Your total turnover will considered for S.Tax purposes not only the turnover for rooms above Rs.1,000 as this is a criteria of applicability, not of charging. S.Tax is applicable on you if you have such room tariff and turnover of Rs.10L or more for all the taxable services.

2. You will consider only taxable services and none other for service tax purposes.

3. Yes, S.Tax is applicable to hotels having A/c rooms, but there is no rule that Service tax will be charged on such A/c rooms only, therefore, you'll have to charge S.Tax on both the rooms.

4. Yes you can register and start charing service tax as soon as you want to as the exemption limit is for you to take, if you don't take it S.Tax authorities are more then happy with it.