Service tax on hotels & restaurants - Professionals - Taxation - TIK Share
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Service tax on hotels & restaurants


Vedanta Deshika

2014-02-18

What activity is liable? 

Services in relation to serving of food, beverage (whether alcoholic or not), Any other article of human consumption

When liable?

Where such restaurant or eating joint or a mess has any of the following facilities
1.Air conditioning
2.Central Air heating

At any part of the restaurant or eating joint or mess
At any time during the year

 

Abatement Scheme 

Nature of services

Exempted

Taxable

Source

Accommodation

40%

60%

Ntfn No. 26/2012-ST

Restaurant

60%

40%

Rule 2C of Valuation Rules

Outdoor catering

40%

60%

Rule 2C of Valuation Rules

Convention centre services

30%

70%

Ntfn No. 26/2012-ST

 

SSI Exemption of Rs 10 Lakhs will be available to service providers. They can exclude the rooms with room rents with declared tariff less than Rs 1000 and compute taxable value for rest of rooms.