Temporary Bar on Service Tax on Bar
SOME hotels in Kerala had challenged in the High Court the imposition of Service Tax on hotels by sub clause zzzzv and zzzzw.
The clauses read as:
(zzzzv) to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises;
(zzzzw) to any person by a hotel, inn, guest house, club or camp-site, by whatever name called, for providing of accommodation for a continuous period of less than three months.
The Kerala High Court has granted interim stay against any coercive steps of recovery of service tax or against any proceedings for imposing penalty for a period of two months.
Kerala High Court Order dated June 16, 2011