Service tax on ac restaurants
This query is : Resolved
10 May 2013
One of my client is running AC and Non-AC restaurants in one premises. Is service tax applicable for both are only for the AC restaurant.
11 May 2013
It is a vexed issue.
i) The intention of the Govt ,seems, is to tax AC restaurants only since the word 'restaurant' precedes rest of the conditions mentioned in notification 03/2013.
ii) But the department may give emphasis to the word 'establishment' appearing in the latter part of the said notification as well as in notification 25/2012 and will levy ST on both the restaurants functioning in same premises.
i) The intention of the Govt ,seems, is to tax AC restaurants only since the word 'restaurant' precedes rest of the conditions mentioned in notification 03/2013.
ii) But the department may give emphasis to the word 'establishment' appearing in the latter part of the said notification as well as in notification 25/2012 and will levy ST on both the restaurants functioning in same premises.
11 May 2013
Entry no 19 of Notification 25/2012 is as follows:-
19. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.
Here, it is specifically mentioned that if facility of air-conditioning is present in any part of establishment, then exemption is not available.
In my view, S.tax will be applicable for all the parts of premises even if one part does not have AC services.
19. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.
Here, it is specifically mentioned that if facility of air-conditioning is present in any part of establishment, then exemption is not available.
In my view, S.tax will be applicable for all the parts of premises even if one part does not have AC services.
25 June 2013
Both the experts are correct. Service Tax is only for AC restaurant and if your turnover is below 30 lacs you can adopt composite scheme and pay VAT at a reduced rate.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Eway bill for machinery reparing
- Gift of mutual fund units to daughter
- Under construction property in ITR
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
