Applicability of service tax

This query is : Open

daniel (Querist)
Follow

19 November 2012 Dear Sir,
We are in the business of restaurants and hence forward we will be entering the catering business so i want to know whether service tax will be applicable and if so what will the vat and service tax structure if i am raising the bill for Rs 12,00,000/- all inclusive (ie.lunch @ Rs 1000/- for 1200 persons)

Regards
Daniel

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

19 November 2012 Yes, Service tax would be chargeable on 60% of total amount i.e value of service will be 60% of total amount of Rs. 1200000 which comes to Rs. 720000 and service tax would be chargeable @12.36% on Rs. 720000.

Message likes : 1 times

daniel

daniel (Querist)
Follow

19 November 2012 Dear Sir,

What about the vat rate applicability and on which amount

Regards
Daniel

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

19 November 2012 VAT shall also be charged @5% of total amount

Message likes : 1 times

daniel

daniel (Querist)
Follow

07 May 2013 Dear Sir,

We are into restaurant industry having air condition in all our outlets but do not have liquor serving licence, we have collected service tax from guests and I want to make the payment if you could please help me with the code under which I need to make the payment

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