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Service tax on dharmasala (guest house)

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CA.Mayank Mittal

Professional

30 Points Posted on 12 January 2013

My client is chairperson of Dharamsala (Guest House) whch is registered under Sociry Act.

THe dharamsala consist of 15-20 rooms and 1 party hall.

The rent of room is below Rs.1000/-

Query is that in case of bulk booking he is providing Whole dharamsala @ say 20000/- bugs fr a day.(toatal rooms and party hall)

Now Whether he is covered under ST laws.

If yes then what r the remedies to help him out?

Replies (2)

Service Tax will be charged only on the hall if it is saperately given provided its tariff value exceeds Rs. 1000. However, no service tax will be charged on room rent. But if it provided combinedly then service tax will be charged on whole amount. In both the cases tax wil be payable only if limit exceeds Rs. 10 lakh. Regards Ashwani narnoli