Service tax on guest house

The same is covered under the Mega Exemption notification. It says that, services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a room below one thousand rupees per day or equivalent; is exempt from service tax. As you are charging less than Rs 1000 the same is exempt from service tax net.

When you are not covered under the service tax net then why will you collect service tax from the service receivers. 10 Lacs limit is applicable when you are providing taxable services.

Thank you very much

Welcome. Hope ur query is resolved.

Yes, agree with above

We are running a Guest House having 7 rooms and 19 beds.

Since the Guest House is situated near Mother Teresa Home we

mainly cater to Foreign volunteers and NGOs nearby. We are charging

Rs. 500-800 per day per bed without food. Are we liable to pay

Service Tax and If yes at what rate. Our Annual income is less

than Rs. 10.00 lakhs

Please advice

Robin Maitra

Plz refer to the answer given above by Ms Prameeta. What is important is Declared Tariff. In case, Declared Tariff is Rs. 1050 and after bargain the same is given at Rs. 800, it is not covered in mega exemption and if such income cross Rs. 9 lakh you have to apply for S.Tax.Registration and on crossing such income Rs. 10 lakh, you have to charge and pay service tax.

What happens when my Declared Tariff is Rs. 500 to 600 per day per bed be it in

a room or in the dormitory. Should I then need to charge Service Tax.

Robin Maitra

No S.Tax. Exemption Notification 25/2012-ST dt. 20.06.12 Sr. 18.

18. Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;

Dear Experts!!

Pls clarify my doubt.

An export firm registered as Non-Assessee in service tax, could claim service tax refund 

under notification no 41/2012?   STC number is mandatory to claim the refund.  I think that STC 

obtained through non-assessee mode in ACES and getting through AC/DC by filling up Form A2 are serve the same purpose.  Also go through the circular  no  919 / 09 / 2010 – CX Dt. 23.03.2010 para captioned non-assessee that specifies who can be registered as non-assessee.

Regards,

Chandru

what is the case when fee charged is greater than or equal to 1000?