If the hotel management opens a Membership Club that offers free accommodation (once only), discount for food and beverage charges and special health center facilities to members by charging annual membership subscription, does the hotel need to pay the 5% tax on the annual subscription received from each member?
Reply
Please be advised that service tax of 5% will be applied on the hotel for the annual subscription charged on the members. This is in line with the Service Tax Act 1975.
