Restaurant - excise , service tax applicability

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This query is : Resolved

Lalit (Querist)

14 July 2013 We are running food and beverage business I.e Restaurant, but I dont know any about taxes applicable ,when it becomes aapplicable, what are ways to avoid it..
Please help me. .

CA Pooja Agarwal

CA Pooja Agarwal (Expert)

15 July 2013 vat as per state laws and service tax @ 4.99% is applicable

Lalit

Lalit (Querist)

15 July 2013 We are from maharashtra, when service tax would be applicable.

CA Pooja Agarwal

CA Pooja Agarwal (Expert)

15 July 2013 12.5 % vat and service tax is charged while providing services to customers in the restaurant

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

18 July 2013 In addition to hotel if you run a bar also with it you have to take state excise licence and pay litre fee as per the state excise rules.Proper liquor stock register and daily consumption register is to be maintained.Regular returns are to be filed to the state excise dept. Refer to Excise dept for details. Recently Kerala HC has issued a judgment in a case against Union Govt that no service tax is to be charged on a hotel and bar business by the Central govt. It is to be seen whether the Central govt will amend the rule or goes to SC on appeal against this judgment......mjk

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