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Legal requirement to start a guest house business


17-May-2023 (In Startup Law)
Sir/Madam, I want to start a Guest House business, so my question is Would I use my Guest house as paying guest accommodation ? If yes so if bed tariff is below 1000 per day would I have to pay service tax or not?
Answers (1)

Answer #1
356 votes
You would need to get yourself licensed from the local fire and health departments. To do this, you would need to comply with their safety requirements. 
As you are providing service to the guest, you are required to pay service tax.
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