service tax
A.R.JOSHI
(Querist) 30 May 2011
This query is : Resolved
A.Whether the following services are chargeable to service tax in case of Hotels having lodging facilities and shown in the bill saperately apart from room rent up to 31.03.2010
1.Service Charges
2.Telephone Sales
3.Laundry sales
4.Sponsorship
5.Travel Desk
6.Miscellaneous receipts.
B.whether service tax is payable on Ayurvedic Massage , Health Club Usage, Taxi Hire Charges, Plantation Visit, Hall hire charges, Lcd/ laptop/P.a system hire etc arranged by hotels for persons staying in hotels when billed saperately along with room rent bill.
G.Sundara Rajan
(Expert) 30 May 2011
Service tax is calculated on the total bill which the hotel makes.
However, if the bills for different services are given differently, and yet all the services are given within the hotel, all of them are considered complementary services for which only the actual charges are payable, and hence hotel cannot collect service tax on all of them seperate but put together. Hotel can collect service tax for its own bill.
S R agrawal
(Expert) 31 May 2011
Service Tax is payable on the Taxable Services provided by any person to another person whether he is an individual or any other entity. Since in this case the Services are being rendered by Hotel, Service Tax is payable on all Taxable Services rendered by the Hotel collectivly. However, the Tax was leviable on the value of Taxable Services provided and not on hotel rent prior to 01.05.2011.
