Service tax on hall charges received for party in a restaura

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This query is : Resolved

Subhash Chander (Querist)

21 May 2013 we are running a restaurant, providing kitty parties of 20 to 25 persons. We are charging as under:

Rs. 1000/- per person + vat 12.5% + service tax with 60% abatement.

and hall charges of Rs. 5000/- .

Now question is : In which category of Services we should consider hall charges. i.e. under Business Auxiliary Services (In which we have to pay service tax on 100% amount) OR

under short term Accommodation services (In which we have to pay services tax on 50% amount) and

also whether we have to charges luxury tax if so how much amount.

VIPIN KUTUMBALE

VIPIN KUTUMBALE (Expert)

21 May 2013 In such case you are providing combined services this can be consider under mandap keeper services also, here short terms accommodation can not be considered as this not hotel or guest house etc.

Bundled service by way of
supply of food or any other
article of human consumption
or any drink, in a premises (
including hotel, convention
center, club, pandal, shamiana
or any other place, specially
arranged for organizing a
function) together with renting
of such premises
70% of the total value shall be taxable ,

(i) CENVAT credit on any goods
classifiable under Chapters 1 to 22 of the
Central Excise Tariff Act, 1985 (5 of
1986) used for providing the taxable
service, has not been taken under the
provisions of the CENVAT Credit Rules,
2004.

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