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.
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.
CAclubindia
