Serving of the food is declared service and service portion in this transaction is taxable. However, Mega Exemption notification exempts the services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment. Further, canteens maintained in a factory covered under Factories Act 1948 are also exempt.
Hence in your case if canteen is not having air conditioning or central air heating system - services provided would not be taxable.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
17 July 2014
So am I now required to obtain a Service tax no. when when my services are exempted from service tax.
CAclubindia
