Hotel accommodation, in excess of declared tariff of Rs. 1000 per day and service provided by air conditioned restaurants that have license to serve liquor are the new services which have been brought under the service tax net.  While proposing to levy service tax on these services, the Union Finance Minister, Shri Pranab Mukherjee has said that the hotel accommodation with declared tariff of over Rs. 1000 per day will have to pay the service tax with an abatement of 50 per cent.  This will mean an effective burden of only 5 per cent of the amount charged.  Air conditioned restaurants with license to serve liquor will now be paying service tax with an abatement of 70 per cent.  The effective burden will be 3 per cent of the bill only in this case.


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  1. jayanta dutta says:

    I have a hotel with lodging & fooding facilities.Room rent is less than Rs.1000,but in fooding section total turnover is more than 4000000 .May I get registration under composition scheme ? If so then what will be my taxable turnover ? Will it be total of fooding & lodging bills ?

  2. natarajan says:

    Hotel accommodation, in excess of declared tariff of Rs. 1000 per day -what is the exact explanation for this- whether charging Rs.1000 in excess of the existing tariff or charging Rs.1000 as room rent- is there any limit for the total turnover of the lodge .e-g taxable beyond 60 lacs turnover pl.explain in detail. I am A SMALL LODGE OWNER THE TOTAL TURNOVER IS 5 LACS PER YEAR

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September 2021