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Uttarakhand hospitality sector exempted from service tax for 6 months
September, 19th 2013

The Centre has exempted the hospitality industry in the flood-ravaged Uttarakhand from service tax till March 2014.

The floods and landslides on June 16 had caused extensive damage in Uttarakhand and adversely affected the life of the people in the state.

"There is a need to provide support to ensure sustenance for the local population by reviving the hospitality industry," Central Board of Excise and Customs (CBEC) said in its 'ad-hoc exemption order'.

In the wake of circumstances of exceptional nature, the CBEC said it has been decided to exempt taxable "services by way of renting of a room in a hotel, inn, guest house, club, campsite or other commercial place meant for residential or lodging purposes."

The levy has also been exempted on "services provided in relation to serving of food or beverages by a restaurant, eating joint or mess."

"This exemption order is applicable for the above- mentioned taxable services provided during the period September 17, 2013, to March 31, 2014," the CBEC said.

Thousands of people, including pilgrims, were killed in the state in the aftermath of the mid-June flash-floods and landslides. About 4,120 people are reported missing.

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