Restaurant in 3 star hotel

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R.AJITH KUMAR (Querist)
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08 September 2012 hai...
i need to know about, whether service tax is applicable for restaurant in a 3 star hotel......
if applicable means, what is the rate of service tax?if there is any abatement?

If can give appropriate link also...

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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08 September 2012 The term ‘restaurant’ has not been defined in the Finance Act, 1997.

Oxford English Dictionary defines restaurant as a place where people pay to sit and eat meals that are cooked and served on the premises. This word has a French origin ‘restaurer’ which means ‘provide food for’. A restaurateur is a person who owns and manages a restaurant.

An abatement of 70 per cent shall be allowed to service provider for the taxable services rendered vide Notification No. 1/2006-ST dated 1.3.2006 as amended by Notification No. 34/2011-ST dated 25.4.2011 by insertion of entry No 13. In the said notification.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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08 September 2012 “Any service provided or to be provided to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises”.

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