What is the abatement for restaurent service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2013 Dear Experts,

one of my client is running restaurant service and he has no lodging facility but provide both food,beverages and liquor services. what is the abatement % applicable and what if they also provide banquet hall service , because a new banquet hall is ready for operation.

CA Vipin Jain

CA Vipin Jain (Expert)
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27 January 2013 Hi,

following are provisions for good, beverages and liquor services:

1. Food, Beverages etc supplied in restaurant- 60% abatement is available so service tax is payable on 40% of the total value.
2. Food, beverages etc supplied in outdoor catering- 40% abatement is available so service tax is payable on 60% of the total value.
3. Bundle service by way of supply of food, beverages etc with renting of premises (like hotel, conventional club, etc specially arranged for organizing a function)- service tax is payable on 70% of total value for complete bundle service
4. Renting of hotels, inns, guest house etc for lodging purposes- service tax is payable on 60% of total value.

following are exempted-

1. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages;

2. Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;

regards

CA Vipin Jain

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Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2013 Thanks Vipin ji.

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