Dear Sir
I have a business guest house rented servicese, My question is I have cross a turnover in this year 10 lacs but my guest house Rent is only Rs 500/- per day. can I charges service tax for customer on Rs. 500/- @ 7.42% or not?
Dear Sir
I have a business guest house rented servicese, My question is I have cross a turnover in this year 10 lacs but my guest house Rent is only Rs 500/- per day. can I charges service tax for customer on Rs. 500/- @ 7.42% or not?
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?
Your are not logged in . Please login to post replies
Click here to Login / Register
Malhotra Rajesh & Associates
New Delhi
B.Com
View Details
CCI
Pro
India's largest network for
finance professionals