Balaji's Lodge Liable to Service Tax - High Court
TIRUMALA Tirupati Devasthanam (TTD) is the Trust that administers the famous Balaji temple of Tirumala (Tirupati), to which millions of pilgrims throng to get His blessings. TTD provides very decent facilities at affordable rates to pilgrims of all economic strata. Accommodation to pilgrims is one of the major activities of the TTD. You may remember, last year, in the Budget a new tax was introduced to tax service provided by a hotel, inn, guesthouse, club or campsite, by whatever name called, for providing of accommodation for a continuous period of less than three months. Hotels charging less than one thousand rupees per day were exempted. While the majority of rooms in Tirupati are charged rates like 50 to 200 rupees per day, there are some guesthouses charging more than 1000 rupees per day.
Now, the Service Tax department has sent a notice to TTD to get registered and pay Service Tax with effect from 1 st may 2011. TTD filed a writ in the AP High Court. The High Court dismissed the writ petition and held that TTD is liable to pay Service Tax.
If you want to get blessings of Balaji and stay in comfortable rooms in the abode of the Lord, you will have to pay a small tax to the Government.
A few years ago, I was in the High Court when a case was being argued in which the Municipal Corporation of Tirupati was the petitioner against TTD. The Counsel for the Municipal Corporation told the Judge, "your lordships tend to give orders in favour of Balaji." The Judge replied, "HE will not pardon me if I do so; HE wants me to give the correct judgement to the best of my ability".
Maybe Lord Balaji wants to pay Service Tax.
We bring you this High Court order today.