Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Service tax on hotels

1550 views 1 replies

Nitin Bavkar

Article Student

29 Points Posted on 01 December 2011

Dear All...I have a doubt..can anybody please resolve...

we have one client which is Hotel.It has two restaurants and one bar in its premises.Both are serving foods & liquor.The liquor license is on the name of Hotel not on individual restaurants.

Hotel is claiming abatement of .50%

& restaurants are claiming abatement of 70%.

Can hotel claim these two abatements.

Can restaurants claim abatements although the license is on the name of Hotel not on Individual restaurants...

Please can anyone give me the solution.please provide supporting if possible.

Replies (1)

Parthraj Parmar

B.Com ARTICLE CA FINAL

63 Points Posted on 13 January 2012

Hello Nitin,

YOu can visit the below mentioned link for your info :

Service Tax On Hotels : https://www.servicetax.gov.in/st-profiles-home.htm

Service Tax on Rooms : https://www.servicetax.gov.in/st-profiles-home.htm

As per your query hotel can claim both the abatments i.e 50 % on Room and 70 % on Restaurant irrespective of License name.

Originally posted by : Nitin Bavkar

Dear All...I have a doubt..can anybody please resolve...

we have one client which is Hotel.It has two restaurants and one bar in its premises.Both are serving foods & liquor.The liquor license is on the name of Hotel not on individual restaurants.

Hotel is claiming abatement of .50%

& restaurants are claiming abatement of 70%.

Can hotel claim these two abatements.

Can restaurants claim abatements although the license is on the name of Hotel not on Individual restaurants...

Please can anyone give me the solution.please provide supporting if possible.