Service tax

d. chandra sekhar (Querist) 29 October 2012 This query is : Resolved
Sir anybody please clarify the issue.

The Government of India has introduced Service Tax on Restaurant & Bar from 01.05.2011. For payment of Service tax on the above service, How arrive the taxable value of not availing the abatement. Is it possible pay the ST only on service portion. Please clarify the issue in detail. If you want any information I will provide you.

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Sankaranarayanan (Expert) 01 November 2012
well question . almost most of the hotels are charging the service tax on the total value of bill, but it is not correct, they have to charge on the service provided part. for example food is 1000 and 100 rs for service then for the 100 rs only they should charge and collect from us.

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