Service Tax on Hotel Room

There is no specification given as you said above but the below mentioned words are mentioned in Budget'11:

Hotel accommodation in excess of ` 1,000 per day and service provided by air

conditioned restaurants that have license to serve liquor added as new services

for levying Service Tax.

First of all it is expected that the levy will face a challnege as something on which ST is not liable.

However for the common man this is a not an option.

It would be on room rental which are taxable  i.e. over Rs.1000/-. That only wouldbe the taxable services and other services would notbe counted for the calcuation of 10 lakhs.