Clarification regarding Short Term Accommodation Service and Restaurant Service

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..... Chief Commissioners of Central Excise and Customs (All), Director General (Service Tax), Director General (Central Excise Intelligence), Director General (Audit), Commissioners of Service Tax (All) Commissioners of Central Excise (All) Commissioners of Central Excise and Customs (All). Madam/Sir, Subject : Short Term Accommodation Service and Restaurant Service- clarifi .....

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..... e relevance of declared tariff is in determining the liability to pay service tax as far as short term accommodation is concerned. However, the actual tax will be liable to be paid on the amount charged i.e. declared tariff minus any discount offered. Thus if the declared tariff is Rs 1100/-, but actual room rent charged is Rs 800/-, tax will be required to be paid @ 5% on Rs 800/-. 2. .....

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..... What is the position relating to off-season prices. Will they be considered as declared tariff. When the declared tariff is revised as per the tourist season, the liability to pay Service Tax shall be only on the declared tariff for the accommodation where the published/printed tariff is above Rupees 1000/-. However, the revision in tariff should be made uniformly applicable to all custome .....

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..... ablishment and (ii) it should have license to serve alcoholic beverages. Within the same entity, if there are more than one restaurant, which are clearly demarcated and separately named, the ones which satisfy both the criteria is only liable to service tax. 2. Will the services provided by taxable restaurant in other parts of the hotel e.g. swimming pool, or an open area attached .....

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..... ded tax imposed by States required to be included for the purpose of service tax. For the purpose of service tax, State Value Added Tax (VAT) has to be excluded from the taxable value 3. Trade Notice/Public Notice may be issued to the field formations and taxpayers. 4. Please acknowledge receipt of this Circular. Hindi version follows. (J. M. Kennedy) Director (TRU) .....

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