St on franchise selling bakery items
This query is : Resolved
Hema Karumbaiah
(Querist)
19 April 2013
I am running a Franchise selling Bakery items like cakes,pasteries,etc. supplied by my Franchiser.Should I pay service tax and if so how much? Please advice.
CA Vikas Acharya
(Expert)
19 April 2013
the sale in bakery is under disputes yet after the budget 2013. that whether it will fall in resturants or not.
1st of all if you are doing business in other brand's name, yes you have to pay tax, as no exemption of 10lakhs which is generally allowed to service providers.
now comes the point whether the sale by you taxable or not, as it is under dispute, and no clarification is there by department.
you can do this thing:
if at your bakery there is a option to sit and eat and also it is a Air conditioned facilitated premise, you are liable.
you are not liable,
if there is no ac or
there is only option of take away.
though all this conditions are for AC restaurants, but till then there's no clarification go with the safer side and if there is sitting and ac facility pay the tax.
this is my view, other experts may have different view till the matter get resolved by the department.
1st of all if you are doing business in other brand's name, yes you have to pay tax, as no exemption of 10lakhs which is generally allowed to service providers.
now comes the point whether the sale by you taxable or not, as it is under dispute, and no clarification is there by department.
you can do this thing:
if at your bakery there is a option to sit and eat and also it is a Air conditioned facilitated premise, you are liable.
you are not liable,
if there is no ac or
there is only option of take away.
though all this conditions are for AC restaurants, but till then there's no clarification go with the safer side and if there is sitting and ac facility pay the tax.
this is my view, other experts may have different view till the matter get resolved by the department.
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