Service tax in restaurant
This query is : Resolved
24 June 2015
Is there a liability to charge service tax when:
An open air restaurant, which has no air conditioner or heater, has an air conditioner in the owners cabin.
The cabin is not a part of the area where food is served to guests.
Please support your opinion with a credible base.
CA R SEETHARAMAN
(Expert)
24 June 2015
Service tax will not be levied on customers dining in restaurants without air conditioning facility or central heating, the finance ministry has clarified.
See the link.
https://timesofindia.indiatimes.com/india/Service-tax-only-in-AC-restaurants-effective-rate-5-6/articleshow/47610606.cms
See the link.
https://timesofindia.indiatimes.com/india/Service-tax-only-in-AC-restaurants-effective-rate-5-6/articleshow/47610606.cms
Arpit Shah
(Expert)
24 June 2015
https://www.caclubindia.com/experts/servoice-tax-on-restaurant-bills-2106634.asp
PAWAN KUMAR
(Expert)
24 June 2015
The views given above are correct. The restaurant which have the facility of air-conditioning or air-heating in the customer dining/lounge will only liable for service tax. Others which do not have the facility of air-conditioning or air-heating, will not be liable for service tax.
As per your query, only the room of the owner of restaurant is having the ac, therefore it is not in the area where service of food or beverages is being provided to customers, hence it is not taxable.
As per your query, only the room of the owner of restaurant is having the ac, therefore it is not in the area where service of food or beverages is being provided to customers, hence it is not taxable.
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