Threshold exepmption to restaurants

The Hon’ble Finance Minister has announced the Union Budget 2013-14 on 28/02/2013. In this budget, notification no. 03/2013 ST Dt. 01.03.2012 has been issued to amend the above serial no. of the mega exemption notification and now the exemption is applicable in relation to the service provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air conditioning or central air-heating in any part of the establishment, at any time during the year.This notification has abolished the condition of license to serve the alcoholic beverages along with air conditioner.
 
It means that restaurants or a mess, not having the license to serve the alcoholic beverages, but having air conditioner in any part of establishment, at any time during the yearare liable to pay service tax. Simply speaking, all the AC restaurants or restaurants with central air heating facilities are liable to service tax w.e.f. 1.4.2013. 

At the same time Notification no. 33/2012 dated 20/06/2012 also applicable to the restaturant services and they can also claim the benefit of therehold limit.

Thank You Raghavender..