Mega exemption notification

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Ramesh Chandra Tiwari

Manager

31 Points Posted on 09 April 2013

Dear Members,

As per Mega Exemption Notification) is amended vide Notification No.3 /2013 – ST with effective from April 1, 2013 Counter sales would attract Service Tax, since the requirement to serve alcoholic beverages is removed thereby bringing all eating joints having facility of air-conditioning or central air-heating within the Service Tax ambit.

My query - Whether tuck shops (refreshment counters) in offices canteen will also fall under this category? These tuck shops are opened for employee welfare. Most of the times these operators are self employed individuals and Company gives them space to run refreshment counter for employees.

Please advise.

Regards,

Ramesh Chandra Tiwari

Replies (2)

Prabhat Kumar

Advocate & Consultant

1820 Points Posted on 09 April 2013

I do agree that such type establishment are made largely for the welfare of the employee.But for the purpose of Service Tax we have to go by the provisions available in the Finance Act and the Rules made thereunder.In your case if your establishment is having the facility of A.C and you have crossedthe bench mark exemption of Rs. 10 lac,liability of payment of Service Tax is there.