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Service tax on hotels

Querist : Anonymous (Querist) 17 May 2011 This query is : Resolved 
Suppose my hotel room rent is Rs. 1100.00 and in addition to that I charge Rs. 110.00 as Service charges and pay that amount to my staff, would i need to pay Service tax of 5 % on the room rent alone or room rent plus service charges ?
ie. Service tax to be calculated on Rs. 1100/- or Rs. 1210.00 ?
Report Abuse
R.Ramachandran (Expert) 17 May 2011
Service tax is payable on Rs. 1210/-.

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