Service tax

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Yash Dave (Querist)
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08 November 2012 i want to konw whether hotel & restaurent with a/c or without ac or bar & restaurent with a/c or without ac are liable to service tax

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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08 November 2012 Dear sir ,

NOTIFICATION NO :1/2006

RESTAURANT SERVICES HAVING AC FACILITY AND PROVIDING ALCOHOL OR BEVERAGES IS LIABLE TO PAY SERVICE TAX ONLY .

2. THE ABATEMENT IS 70% OF THE BILL AMOUNT WHICH MEANS IF THE BILL AMOUNT IS RS 10000 SO IN THAT CASE SERVICE TAX WILL BE CALCULATED AS FOLLOWS :

12.36%* (10000-7000)= 12*36% *3000 = RS 370.80

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CA Sahil Singla..

CA Sahil Singla.. (Expert)
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08 November 2012 Sir

Hotels & restaurents without AC not liable to service Tax at all

Hotels & restaurents with AC AND License to serve alcohal is liable to service Tax. So only AC doesn't matter. You should have License as well.
Also, if you are taxable, then Abatement is 30% of taxable value.So pay tax on 70% of taxable value

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CA Sahil Singla..

CA Sahil Singla.. (Expert)
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08 November 2012 Further, no abatement is available to Only bars or Restuarants. Abatement is for Clubs, Hotels, Pandals

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