Restaurant service

This query is : Resolved

Seema Deepak Dhondi (Querist)
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23 August 2011 Dear Sir/Madam,

Our Client as got a notice of regestering for service tax on swervice provided by restaurant with air condition and having licence to serve alcoholic beverages

for eg
if he is paying sales tax on food and beverage and purchase excise paid on alcohol than for what purpose is service tax Payable
and is he required to get register
and wht are the limit of registration

U S Sharma

U S Sharma (Expert)
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24 August 2011 Restaurant Service
(A) Date of Introduction:- 01.05.2011 vide Notification No.29/2011-ST
dated.25.04.2011
(B) Definition and scope of Service:
―Taxable service, means any service provided or to be provided to any
person by a restaurant, by whatever name called, having the facility of airconditioning 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 it premises.
[Section 65(105) (zzzzv)]

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U S Sharma

U S Sharma (Expert)
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24 August 2011 https://www.servicetax.gov.in/st-profiles/restaurant-serv.pdf

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Seema Deepak Dhondi

Seema Deepak Dhondi (Querist)
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24 August 2011 Dear Sir,

our client is allready paying sale tax on food and excise tax which are included in alcohol
and now again this service tax is charged which will come up Rs 300000 this year,
tell me how he can reduce this liabilty of paying tax

U S Sharma

U S Sharma (Expert)
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24 August 2011 70% abatement is available in the service profile, and the service tax is to be collected in bills and to be paid,

excise on alcohal is state excise,
vat is the matter of state tax, and here you are enjoying the input credit also,

input services are available for credit against the service tax liability, so in total its a beneficiary scheme for the assessee.

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