13 February 2008
Sir, One of my client ia a four star hotel. The receipt by way of Rest & Banquet sale liable to VAT is 6,00,000/- p.m. and the room rent charges collected per month are 9,00,000/- on which luxury tax is paid. Whether rule 53(6) will restrict my set-off to purchase of capital assets and consumables pertaining to kitchen and service of food as the sales are less than 50% of total sales.
If the room rent charges are 4,0,0000/- then waht would be the situation for input credit.
Please reply
If the room rent charges are 6,00,000/- then waht would be the situation for input credit.
Sir, Please give your valuable opinion and any other matter you would like to inform me in ths regard.
CAclubindia
