Is service tax applicable on hotels?

Is service tax applicable on hotels?

Service Tax Rate for Hotels Service tax is applicable only on 60% of value of rent of room, inn, guest house, clubs or other commercial places meant for lodging purposes. However, when service tax is paid only on 60% of the total value, no CENVAT credit or Input Credit can be claimed by the service provider.

What tax do hotels pay?

The Hotel Room Tax (or “transient occupancy tax”) is a 14 percent tax levied on hotel room charges. The tax is collected by hotel operators from guests and remitted to the Treasurer/Tax Collector.

What are the most common types of taxes applicable for hotel stay?

CA Srikant Agarwal

  • Service Charges.
  • Luxury tax.
  • VAT (Value added Tax) and.
  • Service tax.

Who is responsible for service tax registration?

Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.

Who is responsible for service tax in India?

Every service provider is liable to pay service tax in India. Though service tax is an indirect tax which is collected by the ultimate consumer, but still it is the duty of the service provider to collect those taxes and pay to the government.

Why do hotels charge taxes?

Where a tourist tax is charged for the provision of municipal services, additional charges are made by hotels themselves for any number of services not included in the room rate. More often than not, they are levied for the provision of extra beds, baby cots, cleaning, transfers, early check-in or late check-out.

Where is the Chief Commissioner of GST in Mumbai?

1. Office of Chief Commissioner of GST & Central Excise Mumbai Zone. 115, New Central Excise Building, M. K. Road, Churchgate, Mumbai-400 020.

Where is the SR tax help desk in Mumbai?

It is located on the IInd floor of Annexe Bldg. of New Custom House, Mumbai next to Service Centre. It is manned by Two Sr. Tax Assistants.

Where is the custom zone office in Mumbai?

Office Address : O/o The Supdt, APSO Foreign, Santacruz-E, Mumbai-99. Customer care : 022-26156872. It is located on the IInd floor of Annexe Bldg. of New Custom House, Mumbai next to Service Centre. It is manned by Two Sr. Tax Assistants.

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