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Service tax on food supply in rooms

Queries 850 views 4 replies

Is supply of food in Rooms of Hotel chargeable to Service Tax ? If yes than how the value of service portion be ascertained ? Hoping for positive response.

Replies (4)

yes, at the rate of 4.944 percent i.e. 40% of 12.36%..............it will charged of the total bill .....

But Ravinder Restaurant service defines Taxable Service  as ''service provided or to be provided to any person by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in it premises.''  Also Circular no. 173/8/2013-ST clarifies that services provided by a specified restaurant in other areas e.g. swimming pool or an open area attached to the restaurant, are taxable. It does not mention about room service in food. Please justify ur answer.

 

read list of declared services relating supply of food, drinks (catering contract).........it says goods being food, drink, etc. supllied in any manner.........if it is indoor (in your case room service) 60 % abatement is available..............

But sir as per circular no. 139/8/11-TRU, Supply of food in hotel room is not liable for service tax.


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