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Service Tax Rate

Kolkata, India
Level Contributor
38 posts
61 reviews
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Service Tax Rate

Hello

As per the last budget there is an applicable Service Tax for any room rent >=Rs. 1000. Could anyone please clarify what is the rate of this Service Tax?

Recently I booked two rooms of WBFDC, and each attracted a service tax @7% (approximately) whereas a hotel at Darjeeling informed me that they charge 10% Service Tax.

So what exactly is the rate of Sevice Tax?

Thank you

Kolkata, India
Destination Expert
for Kolkata, Darjeeling, India
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8,298 posts
22 reviews
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1. Re: Service Tax Rate

I think it depends on the category of hotel, luxury hotels have a higher rate of tax. The WBFDC hotel will charge Govt Rate.

In the case of the Darjeeling hotel, clarify if its Service Charge or Service Tax.

Kolkata, India
Level Contributor
38 posts
61 reviews
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2. Re: Service Tax Rate

Thanks for the reply.

In their email, they clearly pointed it out as "Service Tax".

Noosa, Australia
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337 posts
339 reviews
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3. Re: Service Tax Rate

The latest info I have is that the Service Tax is 7.42% and the Luxury tax is 5%. Can anyone tell me what level of hotels the Luxury Tax applies to? Is it 5* hotels or is there some other definition?

Kolkata, India
Destination Expert
for Kolkata, Darjeeling, India
Level Contributor
8,298 posts
22 reviews
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4. Re: Service Tax Rate

amp-qld,

The Luxury Tax applies to hotels above a certain number of rooms with air con and other facilities, I'm not sure of the exact number. I think it applies to 3 star and above. 5 Stars will charge Luxury tax, you can count on it.

5. Re: Service Tax Rate

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