Service tax on hotels

Querist :
Anonymous
(Querist) 17 May 2011
This query is : Resolved
Suppose my hotel room rent is Rs. 1100.00 and in addition to that I charge Rs. 110.00 as Service charges and pay that amount to my staff, would i need to pay Service tax of 5 % on the room rent alone or room rent plus service charges ?
ie. Service tax to be calculated on Rs. 1100/- or Rs. 1210.00 ?
R.Ramachandran
(Expert) 17 May 2011
Service tax is payable on Rs. 1210/-.