28 November 2012
I have two Restaurant with facility Air Conditioner. In 1st Restaurant we provide service of alcoholic beverages, and 2nd Restaurant we provide service only Food.
I have a query the service tax is applicable on 2nd Restaurant or not & how i deal with this problem..
28 November 2012
Item No.19 of Not No. 25/2012 dt 20.06.2012 restricts taxability of services provided by restaurant eating joint or mess only to such restaurant eating joints or mess which satisfies both the conditions viz. 1. It has air conditioning or central heating in any part of the establishment at any time during financial year and 2. It has license to serve alcoholic beverages.
It seems that you do not have license to serve alcoholic beverages in restaurant no.2. Hence service tax will not be applicable.
CAclubindia
