Amidst GST, a nightmare for Hospitality Sector
By: – Anish Goyal
Cenvat Credit
Dated:- 27-10-2016<\/p>\n
Service Tax on renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes has to be charged at the rate of 60% ( i.e. abatement 40%) as per Sr. No. 6 of the Abatement Notification No. 26\/2012-ST dt. 20.06.2012. The condition provided for granting an abatement of 40% is written as “same as above”. The relevant extract of Sr. No. 6 of Notification No. 26\/2012-ST dt. 20.06.2012, reads as under:
\nSl.
\n\tNo.
\nDescription of taxable
\n\tservice
\nPercentage
\nConditions
\n6
\nRenting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for resident<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ithout accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Amidst GST, a nightmare for Hospitality SectorBy: – Anish GoyalCenvat Credit Dated:- 27-10-2016 Service Tax on renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes has to be charged at the rate of 60% ( i.e. abatement 40%) as per Sr. No. 6 of the Abatement … Continue reading “Amidst GST, a nightmare for Hospitality Sector”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-1699","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/1699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1699"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/1699\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n10
\nCENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004.”
\nThe condition mentioned in Sr. No. 5A, stated supra stipulates that CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004. However, the condition mentioned in Sr. 6 granting the accommodation service providers to pay service tax on 60% remains unchanged, it still reads, “same as above”. Thus<\/p>\n
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