{"id":647,"date":"2017-02-06T17:46:58","date_gmt":"2017-02-06T12:16:58","guid":{"rendered":"https:\/\/blog.ritulpatwa.com\/?p=647"},"modified":"2017-04-27T11:47:11","modified_gmt":"2017-04-27T06:17:11","slug":"service-tax-rate-on-hotels-restaurants-travel-industry-from-010217-to-gst-inactment","status":"publish","type":"post","link":"https:\/\/blog.ritulpatwa.com\/?p=647","title":{"rendered":"SERVICE TAX RATE ON HOTELS, RESTAURANTS & TRAVEL INDUSTRY : FROM 01\/02\/17 TO GST INACTMENT"},"content":{"rendered":"

There is no change in the base rate of Service Tax i.e. 14%, Swachh Bharat Cess (SBC) i.e. @ 0.5% and Krishi Kalyan Cess (KKC) i.e. @ 0.5%.<\/strong><\/p>\n

NOTES<\/span><\/strong><\/p>\n

(a) Input CENVAT Credit of Swachh Bharat Cess cannot be availed; however<\/p>\n

(b) Input CENVAT Credit of Krishi Kalyan Cess will be available for payment of Krishi Kalyan Cess only. (Notification No. 28\/2016-CE (NT) dated 26.05.2016);<\/p>\n

(c) Swachh Bharat Cess and Krishi Kalyan Cess has to be separately shown on the face of the Tax Invoice \/ Bill.<\/p>\n

 <\/p>\n

Service Tax Rate applicable from 01.02.2017 till GST is Notified<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
S.No.<\/td>\nName of Taxable Service<\/td>\nDate from Which Service Tax is Applicable<\/td>\nFrom 01-02-2017 till GST is Notified<\/td>\n<\/tr>\n
Without Abatement<\/td>\nWith Abatement<\/td>\n<\/tr>\n
Service Tax<\/td>\nSwachh Bharat Cess<\/td>\nKrishi Kalyan Cess<\/td>\nTotal<\/td>\nService Tax<\/td>\nSwachh Bharat Cess<\/td>\nKrishi Kalyan Cess<\/td>\nTotal<\/td>\n<\/tr>\n
1.<\/td>\nRenting of Rooms<\/td>\n01-05-2011<\/td>\n14 %<\/td>\n0.5 %<\/td>\n0.5 %<\/td>\n15 %<\/td>\n8.4 %<\/td>\n0.3 %<\/td>\n0.3 %<\/td>\n9 %<\/td>\n<\/tr>\n
2.<\/td>\nServing Food & Beverages in Air Conditioned Restaurant : Pre-Condition of License to serve alcohol has been withdrawn w.e.f. 10-05-2013<\/td>\n01-05-2011<\/td>\n5.6 %<\/strong><\/td>\n0.2 %<\/strong><\/td>\n0.2 %<\/strong><\/td>\n6 %<\/strong><\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
3.<\/td>\nOutdoor Catering Service<\/td>\n10-09-2004<\/td>\n8.4 %<\/strong><\/td>\n0.3 %<\/strong><\/td>\n0.3 %<\/strong><\/td>\n9 %<\/strong><\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
4.<\/td>\nRenting of Immovable Property<\/td>\n01-06-2007<\/td>\n14 %<\/td>\n0.5 %<\/td>\n0.5 %<\/td>\n15 %<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
5.<\/td>\nMandap Keeper Service :Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention centre, club,\u00a0pandal,shamiana\u00a0or any other place, specially arranged for organizing a function)<\/span> together with renting of such premises<\/td>\n01-07-1997<\/td>\n14 %<\/td>\n0.5 %<\/td>\n0.5 %<\/td>\n15 %<\/td>\n9.8 %<\/td>\n0.35 %<\/td>\n0.35 %<\/td>\n10.5 %<\/td>\n<\/tr>\n
6.<\/td>\nBeauty Parlour & Spa Services<\/td>\n16-08-2002<\/td>\n14 %<\/td>\n0.5 %<\/td>\n0.5 %<\/td>\n15 %<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
7.<\/td>\nRenting of Motor Vehicles<\/td>\n01-04-2000 <\/td>\n14 %<\/td>\n0.5 %<\/td>\n0.5 %<\/td>\n15 %<\/td>\n5.6 %<\/td>\n0.2 %<\/td>\n0.2 %<\/td>\n6 %<\/td>\n<\/tr>\n
8.<\/td>\nTour Operator Service *<\/td>\n01-07-2000<\/td>\n14 %<\/td>\n0.5 %<\/td>\n0.5 %<\/td>\n15 %<\/td>\n8.4 %<\/td>\n0.3 %<\/td>\n0.3 %<\/td>\n9 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

* The Rate of Service Tax on Tour Operator Service has been changed w.e.f. 22-01-2017 vide Notification No. 04\/2017 as below:-<\/strong><\/p>\n

(1) Any booking solely for the purpose of accommodation\u00a0by a tour operator has been removed from the category of Tour Operator which was previously taxed after 90% abatement – It is suggested that in such cases a tour operator should charge his commission separately from the customer and Service Tax to be charged only on the Commission earned by the tour operator and Service Tax at the Full Rate of 15%.\u00a0<\/em><\/p>\n

(2) A tour, other than 1 above : Rate of Service Tax changed to<\/em>\u00a09%<\/strong>\u00a0<\/em>[NEW RATE] from earlier 4.5% [OLD RATE] (Abatement reduced from 70% to 40%).<\/em><\/p>\n

However, in order to facilitate the the Tour Operators, the Government has<\/em>\u00a0permitted<\/strong>\u00a0<\/em>the<\/em>\u00a0CENVAT Credit on Input Services<\/strong>\u00a0<\/em>used for providing the Taxable Services.<\/em>\u00a0<\/em><\/p>\n

Further, it is prescribed that \u201c<\/em>The bill issued for this purpose indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour<\/em>\u201c.<\/em><\/p>\n

F.A.Q.s ON SERVICE TAX UNDER REVERSE CHARGE MECHANISM<\/span><\/strong><\/p>\n

We are noting below the Frequently Asked Questions (FAQs) related to Liability of Service Tax in India under the Reverse Charge Mechanism under Section 66B of the Finance Act, 1994:-<\/p>\n

FAQ 1 : Who is Liable to charge Service Tax under Reverse Charge Mechanism?<\/p>\n

Reply\u00a0\u00a0 : Notification No. 30\/2012 has provided the category of person who are liable to pay Service Tax under the Reverse Charge Mechanism based on the Nature of Service as noted as below:-<\/p>\n\n\n\n\n\n\n\n\n\n\n
S. No.<\/td>\nNature of Service<\/td>\nPerson Liable to Pay<\/td>\n<\/tr>\n
1.<\/td>\n\u00fc\u00a0 Taxable Service received from person located in Non Taxable Territory.\u00fc\u00a0 GTA by Road<\/td>\nBy Recipient being Any Person <\/p>\n

By Specified Person for GTA<\/td>\n<\/tr>\n

2.<\/td>\n\u00fc\u00a0 An Arbitral Tribunal;\u00fc\u00a0 An individual advocate or a Firm of Advocates (other than representational services by Senior Advocate);<\/p>\n

\u00fc\u00a0 A Senior advocate providing services by way of representational services before any court, tribunal or authority, directly or indirectly;<\/p>\n

\u00fc\u00a0 Services provided or agreed to be provided by Government or Local Authority (1) Renting of immovable property and (2) services specified in sub-clause (i), (ii) and (iii) of clause (a) of section 66 D<\/td>\n

By Recipient being a Business Entity<\/td>\n<\/tr>\n
3.<\/td>\n\u00fc\u00a0 Sponsorship Service<\/td>\nBy Recipient being a Body Corporate or Partnership Firm<\/td>\n<\/tr>\n
4.<\/td>\n\u00fc\u00a0 Renting of Motor Vehicle for carrying of passengers, to any person not engaged in similar line of business;\u00fc\u00a0 Supply of Manpower;<\/p>\n

\u00fc\u00a0 Security Services;<\/p>\n

\u00fc\u00a0 Works Contract Service;<\/td>\n

By Recipient being a Body Corporate\u00a0<\/span><\/p>\n

Condition<\/span>:-<\/p>\n

Service Provider being an Individual, HUF, Partnership Firm, AOP located in taxable territory<\/td>\n<\/tr>\n

5.<\/td>\n\u00fc\u00a0 By the Director of Company or a Body Corporate<\/td>\nBy Recipient being a Body Corporate<\/td>\n<\/tr>\n
6.<\/td>\n\u00fc\u00a0 Insurance Agent;\u00fc\u00a0 Recovery Agent of Bank\/ NBFC;<\/p>\n

\u00fc\u00a0 S&M agent of Lottery Tickets<\/td>\n

By the Recipient of Service<\/td>\n<\/tr>\n
7.<\/td>\n\u00fc\u00a0 Aggregator Service<\/td>\nBy Aggregator, or his representative or his agent<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

FAQ 2 : What are the Rate of charging Service Tax under Reverse Charge Mechanism, payable by the Recipient of Service for F. Y. 2017-18?<\/p>\n

Reply : The rate\u2019s of Service Tax to be charged by the recipient of Service under the Reverse Charge Mechanism for F. Y. 2017-18 are as below:-<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Sl. No.<\/strong><\/td>\nDescription of a service<\/strong><\/td>\nRate of Tax<\/strong><\/td>\n<\/tr>\n
1<\/td>\nBy an insurance agent to any person carrying on insurance business (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
1A<\/td>\nBy a recovery agent to a banking company or a Financial Institution or a non-banking Financial Company (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
1C<\/td>\nBy selling or marketing agent of Lottery Tickets in relation to lottery in any manner to a Lottery Distributor or Selling Agent of the State Government under the provisions of the Lottery (Regulations) Act, 1998 <\/strong>(w.e.f. 01-04-2015) (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
2<\/td>\nBy a goods transport agency in respect of\u00a0transportation\u00a0of goods by road (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
\u00a03<\/td>\nBy way of sponsorship (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
4<\/td>\nBy an arbitral tribunal (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
5<\/td>\nBy an individual advocate or firm of advocates by way of legal services, directly or indirectly (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
5A<\/td>\nBy a Director of a Company or a body corporate to the said company or the body corporate (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
6<\/td>\nBy Government or local authority by way of support services<\/span> excluding,-\u00a0\u00a0(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994\u2013 (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
7<\/td>\nBy way of renting of a\u00a0\u00a0motor vehicle designed to carry passengers, to any person who is not engaged in the similar line of businessi) On Non-Abated Value (Partial Reverse Charge upto 50%<\/strong>)<\/p>\n

ii) On Abated Value (100%)<\/td>\n

 <\/p>\n

7.5 %<\/p>\n

6 %<\/td>\n<\/tr>\n

8<\/td>\nBy way of supply of manpower including Security Service for any purpose (100%)<\/td>\n15 % <\/td>\n<\/tr>\n
9<\/td>\nOn Service portion in execution\u00a0of works contract (Partial Reverse Charge upto 50%<\/strong>)- In case of Original Work \u2013 Value of Service is 40%<\/p>\n

– In case of maintenance or repairs or reconditioning or restoration or servicing of any goods\u00a0 – Value of Service is 70%<\/p>\n

– In case of Other Works Contract \u2013 Value of Service is 70%<\/td>\n

 <\/p>\n

3 %<\/p>\n

5.25 %<\/p>\n

 <\/p>\n

5.25 %<\/td>\n<\/tr>\n

10<\/td>\nBy any person who is located in a non-taxable territory and received by any person located in the taxable territory other than non-assesse online recipient (100%)<\/td>\n15 %<\/td>\n<\/tr>\n
11<\/td>\nIn respect\u00a0of\u00a0\u00a0services\u00a0\u00a0provided or agreed to be provided\u00a0by an Aggregator defined in Rule 2 (aa) of the Service Tax Rules (w.e.f. 01-03-2015)Liability of Reverse Tax on Aggregator of Service or his representative. <\/strong>(100%)<\/td>\n15 %<\/td>\n<\/tr>\n
12<\/td>\nIn respect of services provided or agreed to be provided by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India<\/td>\n15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

There is no change in the base rate of Service Tax i.e. 14%, Swachh Bharat Cess (SBC) i.e. @ 0.5% and Krishi Kalyan Cess (KKC) i.e. @ 0.5%. NOTES (a) Input CENVAT Credit of Swachh Bharat Cess cannot be availed; however (b) Input CENVAT Credit of Krishi Kalyan Cess will be available for payment of …<\/p>\n

SERVICE TAX RATE ON HOTELS, RESTAURANTS & TRAVEL INDUSTRY : FROM 01\/02\/17 TO GST INACTMENT<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[4],"tags":[310,154,323,314,166,324,183],"class_list":["post-647","post","type-post","status-publish","format-standard","hentry","category-chartered-accountants-ca","tag-ca-for-gst-registration-in-india","tag-ca-in-india","tag-gst-consultant-in-india","tag-requirements-for-gst-registration-in-jaipur","tag-service-tax-on-hotels-and-restaurants-in-india","tag-service-tax-on-tour-operators","tag-service-tax-registration-in-india"],"_links":{"self":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts\/647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=647"}],"version-history":[{"count":3,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts\/647\/revisions"}],"predecessor-version":[{"id":710,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts\/647\/revisions\/710"}],"wp:attachment":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}