Service tax applicability for hotel industry

Dear Sir.

If the Tariff of hotel is less than Rs.1000/-  you need not to pay any Service Tax.

If Tariff is more than Rs.1000/- per day you need to pay Servivce Tax @ 12.36 on 50 % of your Invoice value and you shall not be entitled to avail CENVAT credit of duty paid on inputs and Capital Goods and Service Tax Credit on Input Services.

Hotel stay shoulkd be less than 3 months.

Threshold limit of Rs.10/- Lakhs available to you.

Regards.

DILIP DARJI.