Service tax on restaurant

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2013 I have started a NEW A.C. Restaurant in April 2013.When should i get myself registered under service tax,When my sale crosses 9 lakhs or right now?Or in next financial year if sale of 2013-14 exceeds 9 lakhs?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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03 May 2013 in this financial year, whenever your sales exceed 22.5 lacs,
because in case of ac resturant 40% is taxable only
and 40% of 22.5 lacs is 9 lacs.
this is because of reason that the Registration is req when the AGGREGATE VALUE OF TAXABLE SERVICE (agts) exceeds 9 lacs

and as per definition of AGTS any exemption will not be calculated in calculating AGTS. also there the word TAXABLE is written.
Hence 60% abatement in case of restaurants should be separated for checking the limit of 9 lacs and 10 lacs(for tax payment

though this is my understanding of provision, others may differ.

Note: if your restaurant is under the name of some big brand name, then registration required now, as no exemption for them.
and registration requiered in the year it crosses the limit, not to wait for the next year