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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 Suresh Jain

CA Suresh Jain (Expert)
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09 September 2012 1. Yes service tax is applicable.
2.Rate of service tax is 12.36%
3. Abatement under notification 26/2012 available provided CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
4. You have the option to determine the value of service provided i.e. supply of food in restaurant as per rule 2C of Service Tax (Determination of Value) Rules, 2006

For further clarification please mail the query at sureshjain.nj@gmail.com and pay if you please Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.
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