i) The intention of the Govt ,seems, is to tax AC restaurants only since the word 'restaurant' precedes rest of the conditions mentioned in notification 03/2013.
ii) But the department may give emphasis to the word 'establishment' appearing in the latter part of the said notification as well as in notification 25/2012 and will levy ST on both the restaurants functioning in same premises.
11 May 2013
Entry no 19 of Notification 25/2012 is as follows:-
19. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.
Here, it is specifically mentioned that if facility of air-conditioning is present in any part of establishment, then exemption is not available.
In my view, S.tax will be applicable for all the parts of premises even if one part does not have AC services.
25 June 2013
Both the experts are correct. Service Tax is only for AC restaurant and if your turnover is below 30 lacs you can adopt composite scheme and pay VAT at a reduced rate.
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