Go AD-Free with CAclubindia Pro and get Daily WhatsApp Updates. Subscribe Now!

Abatement

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2016 Is catering business taxable under service tax ? If yes what is the abatement ? On what basis exemption limit is calculated..... If Total value of service is Rs.17,00,000 then the value of taxble service is (17,00,000-10,00,000) = Rs. 7,00,000 or Rs. 17,00,000 - (17,00,000*Abatement Rate) ? Please guide me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

02 July 2016 No service tax applicable on Catering business in own non AC restaurant. No service tax on take away catering service. Service tax at 15% on 60% value(40% abatement) payable on out door catering service.
Service tax payable only if 17,00,000-(17,00,000*abatement rate) exceeds 10 lacs.
For AC restaurant 60% is the abatement rate.

Message likes : 1 times

Aksha

Aksha (Querist)
Follow

02 July 2016 thank u so much sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok