St on franchise selling bakery items

This query is : Resolved

Hema Karumbaiah (Querist)
Follow

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

CA Vikas Acharya (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

Vishnu Agarwal

SHUBHANGI GOEL

Shivchandra Jakhotia

CA Lalit Kumar Agrawal

Subscribe Now

St on franchise selling bakery items

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA