A hotel charges 3500/- as room rent per day, plus 10% Luxury tax 350/-, plus service charges 10% 350/-, & service tax 5.15% (before 31 march) on Room rent 3500/- + service chg 10% 350/- = 3850/- x 5.15% = 198/-.
I want to ask that as per act hotel has to charge service tax on room rent then why Hotels are charging Service tax on service charges also. please advice
