Is service tax applicable for take away of frozen foods

Hello,I want to know will service tax be applicable to frozen foods outlet ...where customers are allowed to sit and eat,there will be no ac in sitting area,however air condition will be needed to keep frozen foods in storage area.

my question is that will service tax be applicable in such scenario...

 

 

 

 

 

Replies (7)
If there is no ac in outlet itself then the same is not taxable. But if you are selling frozen food on mrp then it is not liable for st. In all other cases it is chargeable to st and value of service portion will be 40% of amt charged. But this being said there are contradictory decision on levy of service tax on value of food supplied. So if value of food supplied is different and service charges are seperately charged then st has to be paid on whole of service charges.
Some shopkeeper charged vat on full value of invoice then on total value, charged service tax, is it correct...
No it is not at all correct. That is wrong practice followed. Vat shld be charged on amount of value of food and st on service charges. Where there is vat there cant be st and where there is st there cant be vat.

IF AIR CONDITIONED FACILITY IS NOT PROVIDED. IT IS NOT TAXABLE FOR SERVICE TAX. MERE FROZEN FOODS TAKEN IN OUTLET ARE NOT TAXABLE. IF ANYONE TAKE FOOD AS SELF DELIVERY IT IS ALSO NOT TAXABLE EVENIF IT IS AIRCONDITIONED OUTLET.

I AGREE WITH KARTHIK

There are 2 issues in the original query: 

1. Whether eating place with no a/c except to keep food forzen is liable under ST? - Ans- No only a/c restaurants are liable.

2. Whether there is any service tax on take aways? Ans- It is mere sale of food and liable only for local VAT and no servic etax is payable on the same.

Thanks everyone for your reverts and feedback

Hello,

But Haldirams & Dominos are chargeing service tax on take away delivery....

 

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