Service Tax
Akhil
(Querist) 15 June 2009
This query is : Resolved
Dear All
We are executing Operating,Marketing and Technical services agreement with the Owner's of the property having Hotels.Under the agreement we are running the operations of the Hotel by placing General Manager and other managers of the department.Also the complete marketing support for Hotel is from our end.For this the Owner of the Hotel is paying a percentage of fees on gross operating income of the hotels monthwise.In the bills raised we are charging service tax.But the Owner's are disputing service tax as they were saying that the services are not leviable.Accordingly we have not deposit the service tax with the department.But now we have received notice from the department for payment of service tax.
Please advise whether we are liable to deposit the service tax or not.
Sankaranarayanan
(Expert) 15 June 2009
asper ur explanation, u raised the bill with applicable service tax rate. hence asper the bill by way u be liable for it. but if the amount is not been received frm them , then ur service is come under servicetax liablility then u r liable.
the explanation of hotel owners are not authoendical, and all explanation of u r not acceptable.
Sankaranarayanan
(Expert) 15 June 2009
asper ur explanation, u raised the bill with applicable service tax rate. hence asper the bill by way u be liable for it. but if the amount is not been received frm them , then ur service is come under servicetax liablility then u r liable.
the explanation of hotel owners are not authoendical, and all explanation of u r not acceptable.
Akhil
(Querist) 15 June 2009
Dear Sankar and Nirav
Thanx for reply.
But I didn't understood.My problem is that Owner's of the Hotelfor whom we are oerating the Hotel and providing marketing services are not paying service tax.Do we raise service tax in the bill or not.If we do not add service tax in the fee then on waht basis department is asking for service tax from us.
Also we raising debit note for the salaries of our managers to the Owner's and asking for reimbursememt.Do ask for service tax on this or not. Owner's of the hotel are not paying service tax on reimbursement but department has raised a demand on us.
Please advise.
Akhil
(Querist) 16 June 2009
Please reply the above query.
