Clarification issued by CBEC regarding Short Term Accommodation Service and Restaurant Service vide Circular No. 139/8/2011-TRU dtd. 10-May-2011.
Since the levy of service tax on the aforesaid two new services came into force with effect from 1-May-2011, a number of queries have been raised by the potential tax payers. These are addressed as follows:
Short Term Accommodation Service:
1. What is the relevance of declared tariff? Is the tax required to be paid on declared tariff or actual amount charged?
Clarification: “Declared tariff