Service charge

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

CA Nitish Vijay

CA Nitish Vijay (Querist)

11 October 2013 can a non-ac restaurant giving printed bill charge service tax @ 4.94%?

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 October 2013 No. Under what service tax head will u deposit service tax to the treasury?

Anyways, if you collect service tax, you have to deposit it with the treasury. What u gain out of it, I am unable to understand.

CA Nitish Vijay

CA Nitish Vijay (Querist)

10 November 2013 Actually i asked them the same but it is bifurcated into ac and noc ac restaurant.

Nikhil Kaushik

Nikhil Kaushik (Expert)

10 November 2013 dear Nitish,

last month a circular was issued wherein it was clarified that non-ac restaurant sharing kitchen with AC restaurant are not liable for service tax.

please refer circular Circular No.173/8/2013 – ST dated 7 October 2013.

However, separate seating arrangement is not sufficient to claim exemption from service tax. You also need to do separate branding for the non-ac restaurant.

CA Nitish Vijay

CA Nitish Vijay (Querist)

11 November 2013 ok Nikhil Kaushik, Thanks for the info.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now