Service tax in restaurant

This query is : Resolved

Mitesh (Querist)
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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

CA R SEETHARAMAN (Expert)
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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

Arpit Shah

Arpit Shah (Expert)
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24 June 2015 https://www.caclubindia.com/experts/servoice-tax-on-restaurant-bills-2106634.asp

PAWAN KUMAR

PAWAN KUMAR (Expert)
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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.

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