Hi, I had a few qureies about service tax applicable in Hotels,
1. Service tax applicable in hotels is on the published tariff or on the amount calculated after giving discount on the published tariff. e.g. If there is a hotel XYZ with published tariff Rs. 1200 and is offering a 10% discount on the published tariff. Then is 8.7% service tax applicable on Rs. 1200 or on Rs. 1080(1200 minus 10% discount)?
2. Is 8.7% service tax applicable on extra bed offered in a room. If I charge Rs. 300 for extra bed in a room, then will I charge the guest Rs. 326.1 (300 + 8.7% service tax)?
Kindly Guide