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Applicability of service tax

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sravan

assitant

28 Points Posted on 12 June 2016

One of client is in business of Pub & Restaurent, they are admitting to DJ show by giving a token which costs Rs.1000/- but for this amount customers are eligible for any drinks or beverages or any food they want to have during that time.The amount was treated as sales amount of food or drinks but not as sale of entry tickets.

Now the question is Whether it can be treated as admission to musical show and apply service tax for the amount collecting as entry fee(cover fee)?

If so applicable, is there any abatement for the same?

Replies (1)

karan jit singh

Consultant

1148 Points Posted on 13 June 2016

Originally posted by : sravan
	One of client is in business of Pub & Restaurent, they are admitting to DJ show by giving a token which costs Rs.1000/- but for this amount customers are eligible for any drinks or beverages or any food they want to have during that time.The amount was treated as sales amount of food or drinks but not as sale of entry tickets. Now the question is Whether it can be treated as admission to musical show and apply service tax for the amount collecting as entry fee(cover fee)? If so applicable, is there any abatement for the same?

First of all let me clear you , that abatement is on musical performance and not musical show.
Second, here simply service treated as restaurant service. valuation is different for Service portion consider rule 2C of valuation rule. Further consider also 33/2012.

Regards Karanjit Singh | +91-7503588224 Read more at: /forum/kkc-applicability-at-glance-361370.asp