Service Tax Abatement On Room Service

A hotel has rooms and a restaurant in its building customer can eat food in restaurant or order food in his her own room.

Service tax abatement on room service. 15 11 2015 on various services. Uoi wherein the hon. A service provider hotel provides accomodation services to its customers hotel has fixed its room tariff for some rooms rs 1000 and above and for few rooms below rs 1000 suitable exemption has been given vide notification 31 2011 st dt. Service tax the base rate of service tax shall continue to be 14 as applicable w e f.

Transport of goods passengers by rail hitherto service tax was payable on 30 of the value of services of rail transport of goods and passengers with or without accompanied belongings without any condition. Description of taxable service abatement taxable value conditions 1 services in relation to financial leasing including hire purchase 90 10 nil. Exemption from service tax on room rent. And it will include all amenities.

Changes made in service tax abatement provisions with effect from 01 04 2015 1. But this is not correct in all cases. The view of the tru as above can be supported from the supreme court judgement in the case of bsnl vs. Abatement rate chart under service tax s n service taxable condition 1 goods transport agency gta any person who pays or is liabl eto pay fre g ht r hims l through his agent for the transportation of such goods.

This deduction is called abatement in service tax this has been continued in new system also but with revised rate of abatement. Supreme court has held that. A 70 abatement on this service which is inter alia meant to separate such portion of the bill as relates to the deemed sale of meals and beverages was provided for from 1 5 2011. 2 transport of goods by rail 70 30 cenvat credit on inputs capital goods and 2a.

Entry 18 of the notification 25 2012 st dated 20 06 2012 substituted by the notification no 06 2014 provides that no service tax is required to be paid if the declared tariff of a room or unit of accommodation is below rupee one thousand. 25 04 11 tru circular no 3345 3 2011 dt 25 4 11 has clarified that declared tariff has been defined in the notfn. So one has to check all the conditions placed against the abatement rules. Generally it is assumed that if abatement is availed then service provider can not claim cenvat credit.