Go AD-Free with CAclubindia Pro and get Daily WhatsApp Updates. Subscribe Now!

Applicability of service tax

Queries 223 views 1 replies

sravan

assitant

78 Points Joined June 2013

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

1299 Points Joined November 2010

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