The state of Uttarakhand has been exempted from Service Tax till March 2014. The Centre has taken this decision after keeping in mind the current circumstances of the flood-ravaged state.
It is to be noted that in the month of June this year, Uttarakhand witnessed one of the most dreadful floods in its history. Regions like Kedarnath, Badrinath, Uttarkashi, Chamoli and Rudra Prayag were amongst the worst flood-hit areas. These regions were afflicted with major destruction. The state is in the phase of economic and social turmoil. Since the state is suffering huge losses in terms of lives and properties, the Central government has decided to exempt service tax on the hospitality industry of Uttarakhand.
The Central Board of Excise and Customs (CBEC) said in favor of the state that Uttarakhand requires extensive support in order to restore it completely. The Centre, therefore has decided to exempt the services that are taxable. Lodging, hotels and other forms of accommodation facilities in the state will now be service tax free till March 2014. Services in restaurants and other eating places will also be exempted from the Service Tax. CBEC is taking all the possible measures, in order to support the revival of the state and its hospitality industry.