Can the profits from a Hotel business be computed u/s.44AF? Is Hotel business a retail one?
Can the profits from a Hotel business be computed u/s.44AF? Is Hotel business a retail one?
Retail is no way connected with service sector (hotels, etc)
| Originally posted by :Piyush Jain | ||
| " | Retail is no way connected with service sector (hotels, etc) | " |
But any way food is considered as goods under sale of goods act and VAT is Payable on it. SO can it be treated as goods?
Hi..ALL
hotel is under service industries
but LST/VAT is to be payable necause under VAT act food items is considered as goods.
but for rent/any other charges paid for non - food items shall be subjcet of service tax.
Regards.
Narendra
| Originally posted by :narendra Kumar | ||
| " | Hi..ALL hotel is under service industries but LST/VAT is to be payable necause under VAT act food items is considered as goods. but for rent/any other charges paid for non - food items shall be subjcet of service tax. Regards. Narendra |
" |
Service tax is not charged on food na?
hi Vijay.
let .. x co. is suplying only food items ..
followings are two condition.
when consumer directely approach to shops and purchased some food items then 4 % VAT shll be charged under Vat act.
second case,, if such hotel has been suplying breakfast & other food items on contract basis to any other organisation like school , hospital & corporate houses ...then remember VAT shall not be imposed on this because this is purely nature of rendering services. so Service tax @ 10.3 % shall be added with bills /invoice to such organisation.
Regards.
Narendra
Vijay, hitting the target directly, 44AF are generally for small retailers( like vendors & kirana shopkeepers). set some points in your mind
a) hotel is connected with service industry
b) hotel is different from restaurant and food is treated as good only for sales tax purpose and therefore sale of food is exempt from service tax.
Hope this will make the chair comfortable
Regards
Piyush
As per the provision of 44AF : It is applicable to the assessee, who is engage in the business of retail trade in any goods or merchadise and whose TO does not exceeds 40 Lakhs.
Hence it is clear that Hotel business is not a trading, Therfore 44AF is not applicable.
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