Chartered Accountant
3228 Points
Joined August 2011
3. In rule 2B of the said rules, after rule 2B, the following rule shall be inserted, namely:-
“2C. Determination of value of taxable service involved in supply of food and drinks in a restaurant or as outdoor catering.- Subject to the provisions of section 67, the value of taxable service involved in the supply of food or drinks for consumption either in a restaurant or as outdoor catering service, either by itself or along with other services, shall be the percentage of total amount, specified in column 3 against the respective descripttion of services mentioned in the following Table:-
Table
Sl.
No.
|
Descripttion
|
Percentage of
total amount
|
1
|
2
|
3
|
1.
|
Service involved in the supply of food or any other article of human consumption or any drink at a restaurant
|
40
|
2.
|
Service involved in the supply of food or any other article of human consumption or any drink as outdoor catering service
|
60
|
Explanation 1.- For the purposes of this rule, “total amount” means the sum total of the gross amount and the value of all goods, excluding the value added tax, if any, levied on goods or services supplied free of cost for use in or in relation to the supply of food or any other article of human consumption or any drink, under the same contract or any other contract:
Provided that where the value of goods or services supplied free of cost is not ascertainable, the same shall be determined on the basis of the fair market value of the goods or services that have closely available resemblance.
Explanation 2.- For the removal of doubts, it is clarified that any goods classifiable under chapter 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) meant for human consumption shall not be considered as “inputs” for the service portion in an activity wherein goods, being food or any other article of human consumption or drink is supplied in any manner as part of the activity