hostel service is chargeable or not, Service Tax

[khan mohd]

I am running a hostel service since 2012 onwards with mess facility. will u please confirm me weither i am liable to pay service tax on that period of 2015 to 2016.

Posts / Replies

[KASTURI SETHI]

Both services (Renting of Immovable Property and Catering Services) are not naturally bundled. These are to be treated as separately. If renting out is less than Rs.one thousand per day per unit, it is fully exempted. Regarding catering, you can avail threshold exemption limit of Rs.ten lacs. The value of wholly exempted services are to be excluded while arriving at threshold exemption limit. See Notification No.33/12-ST dated 20.6.12 as amended.If any doubt, post your further query here.

[Ganeshan Kalyani]

Sri Kasturi Sir, you have correctly replied. Thanks.