Same premises for taxable & non-taxable services-restaurant

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2016 Dear Professional,

I am operating a restaurant which has air conditioned room and registered in service tax. But 75% of my turnover consist of take away parcels from a counter located out side the restaurant.The sales are chiefly in cash and it is difficult to prove to the service tax department for taxable and non-taxable sales.

Hence, I decided to start a new firm on the same premises under the proprietorship of my wife. Old firm shall provide - Take away parcels and New firm shall provide dine in service from two different counters and separate billing. There will be a common kitchen.

My question is-
1. Can I register a new firm on the same address? If yes, please share relevant section or circular (if any).
2. If No, shall I cancel the registration of the old firm and then apply for the new firm?
3. Please suggest any changes in the above arrangements?

Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 September 2016 1 Yes register a new firm in the new premises. See Circular No. 173/8/2013 ST dt.07/10/2013.
2 No service tax applicable on take away foods from outside the restaurant.

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