Service tax on hostel mess

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MESS CHARGES COLLECTED AS PART OF HOSTEL CHARGES WHETHER ANY ST APPLICABLE ON THE MESS CHARGES COLLECTED AS THE ROOM RENT DOES NOT EXCEED RS. 1,000 PER DAY. SATISFIES THE CONDITION OF AIRCONDITIONING FACILITY AT THE ENTERPRISE. 

 

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Maybe the concept of bundled service couldbe examined.

You need to examine whether your services are naturally bundled (i.e., commercial provided by others in the same manner as you are providing). If yes, your services may not be taxable, provided you charge only one amount i.e., towards the rent.

 

If your services are not naturally bundled, then the highest rate applicable to any of the service would be leviable. Thus, in such situation, if you are charging only one amount then the entire amount would be liable to 14.5%. If you are charging separate amounts then the levy could be separate.

COMMON FOOD AS BREAKFAST, LUNCH & DINNER BEING PROVIDED AS PART OF RENT, ADDITIONAL FOOD SUCH AS MILK AND OTHER SPECIAL FOODS BEING CHARGED OUT OF RENT


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