Service Tax on Telephone Call charges collected by hotels

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..... Service Tax on Telephone Call charges collected by hotels
Query (Issue) Started By: - sumeet tholle Dated:- 19-1-2013 Last Reply Date:- 21-1-2013 Service Tax
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Service Tax
Sir, .....

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..... One of the my client is 5 Star Hotel. They are collecting telephone call charegs from their customers but not collecting Service Tax extra and not paying ST on that to Govt. They are doing this prac .....

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..... tice since a long time i.e. 8-10 years. Audit Party asked them to pay Service Tax on Telephone Call charges collected under Business Auxiliary Service and the demand is for 5 years. Is Servive tax P .....

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..... ayable prior to 01/07/2012 ? Pl. guide. Thanks. Sumeet Reply By Pradeep Khatri: The Reply: If this 5 star hotel is by adding markup while charing the telephone expenses to it's customer then you .....

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..... are liable to pay the tax on such charges, otherwise not. There was a recent judgment of the Intercontinental Consultants and Technocrats Pvt. Ltd. v. Union of India (2012) 12 TMI 150 (Delhi) which sa .....

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..... ys that reimbursement of expenses would become the part of taxable amount for the purpose of calculating of Service Tax.
Discussion Forum - Knowledge Sharing .....

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