Vat / service tax on food & alchohol in bar

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Rahul Jain (Querist)
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15 June 2015 What VAT & service tax will be applicable on food & alcohol in a bar.

The restaurant doesn't have AC and is in Mumbai
Pls help..

And what will be the case if the restaurant has AC

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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15 June 2015 if the foods are served in Non-AC
no service tax is applicable

but if it is served in AC

Rate is as follows

for Service Tax:

Service Tax Rate (from 1st June) 14%

Proportion on which service tax is levied 40%

Net Effective Rate 5.6%

VAT rate is state wise so pls refer your state act for the rate, however it is payable on the whole amount (in some states it is 14.5%)

For Eg

Food Bill Rs.1000
Service Charge Rs.100

VAT (14.5%) Rs.159.50

Service Tax Rs.61.60

Rahul Jain

Rahul Jain (Querist)
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15 June 2015 It is located in Maharashtra..
And it doesnt have AC, but serves alcohol

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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15 June 2015 Non Air Condition Restaurant, whether serving liquor or not are exempted

only thing is if it is AC then ST is applicable

however if there is more than one restaurant, but if they are clearly demarcated and separately named but food is sourced from a common kitchen, only the service provided in the specified restaurant is liable to service tax and service provided in a non air-conditioned or non centrally air- heated restaurant will not be liable to service tax. In such cases, service provided in the non air-conditioned / non-centrally air-heated restaurant will be treated as exempted service.

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Rahul Jain

Rahul Jain (Querist)
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15 June 2015 And Anybody have idea about VAT on alchohol/ food in bar in Maharastra