We own and operate hotels across Uttarakhand and provide services such as renting of rooms, restaurant services for food and beverage etc. We have a centralised registration under service tax law and have been duly discharging our service tax liability. We have been informed that an exemption from service tax has been provided to all the hotels in Uttaranchal. In this regard, kindly advise us regarding the applicability and the period during which the exemption is applicable.
The central government has recently issued an ad-hoc order No. 1/1/2013 dated 17 September 2013 (order) providing an exemption to hotels, restaurant located in Uttaranchal. As per the order, in view of the recent floods and substantial damage in the state, service tax exemption has been provided to the following services:
* Services by way of renting of a room in a hotel, inn, guest house, club or other commercial place meant for residential or lodging purposes; and
* Services provided in relation to serving of food or beverages by a restaurant.
The aforesaid exemption has been provided for a limited period from 17 September 2013 to 31 March 2014. Thus, for the aforesaid period, hotels and restaurants in Uttarakhand would not be required to pay any Service tax.
Voluntary payment of tax dues in Delhi
We are a trading concern registered under the Delhi Value Added Tax Act, 2004. For FY 2005-06 and 2006-07, we have certain dues which have remained unpaid. A new scheme has been introduced under the Delhi VAT law for voluntary payment of taxes. Please advise whether we can pay the dues under this scheme.
The Delhi Tax Compliance Achievement Scheme, 2013 (Scheme), has been introduced under the DVAT Act 2004. As per the scheme, a dealer is granted immunity from interest, penalty and other proceedings on payment of ‘tax dues’ (not paid earlier) for the period 1 April 2005 to 31 March 2013. A dealer opting for the scheme would be required to make an application on or before 31 January 2014 along with proof of payment of 50% tax due. Further, the remaining 50% would be required to be paid by