Service tax for hotels

Declared Tarriff of Hotel is Rs 990 and annual turnover is Rs 1900000.

Is the Hotel Liable to charge/pay  service tax ..?

Replies (4)

No, Since declared tariff is below rs. 1000/- hotel is covered under mega exemption notification. No service tax is payable.

Thank you very much 
Also could you refer the clause in which it is stated under the Service tax Act.

It is as per mega exemption notification no.25/2012

https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st25-2012

It is stated in clause 18 of the mega exemption notification i.e. notification 25/2012.

The said clause states as under:

"Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent;"

Regards,

Ravi Kumar Somani

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