My client have restaurant. My client serve food in restaurant have air condition and have home delivery of food. My client levy service tax 5.60% on food serve in restaurant on 40% of bill amount.My client charge delivery charge on home delivery and not collect service tax My client pay royalty for use of band name, on royalty my client pay service tax on royalty amount @ 14%.
please guide me can i take full cenvat credit of service tax paid on royalty
06 October 2015
40% charge of service tax is correct. In case of home delivery 14% has to be collected on the delivery charges alone. As far as service tax on royalty is concerned you can claim the full credit.
CAclubindia
