Service tax on restaurants

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Mitesh Doshi (Querist)
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01 January 2013 What is the position on service tax applicability is an Air Conditioned restaurant is not having a permanent licence to serve Liquor but they buy a temporary licence to Serve Liquor ONLY on weekends. Will the Service Tax be charged...? If yes, Will it be charged on entire revenue (All days Revenue) or only on the revenue earned during weekends....?

Thanks in advance..

Kaushik Vinod

Kaushik Vinod (Expert)
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02 January 2013 Hi Mitesh,

I am giving the extract of the item no, 19 of Notification No.25/2012 dated 20-06-2012 and the Licence to Serve the Alcoholic beverages is pre condition for taxability of the Service otherwise the same is exempt.
In my opinion the for taxability of Service you must possess the licence to Serve the Alcoholic beverages.

Tax to be charged on taxable amount and not on the exempt amount.

Thanks

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 January 2013 If your total turnover does not exceed 10 lacs then no ST whether youdeal in liqure or any other taxable services but for liqure you must procure the licence otherwise you may be trapped under other acts.

Other matters I agree with the expert

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