Service tax applicablity.

Dear Mr. Prashad,

Services of Hostels used for residential purposes will be exempt. Assumption there tariff rate is below Rs. 1000 per day.

Thanks for reply....but can u pls share the source like any notification/circular?

Dear Prasad,

Entry no 18 of mega exemption notification no. 25/2012-ST dated 20-6-2012.

but as per my interpretation Entry no 18 of mega exemption notification no. 25/2012-ST dated 20-6-2012 does not include Hostel.

The Word "other commercial places meant for residential or lodging purposes" covers Hostels, bed &  breakfasts etc.