Service tax applicability

Queries 753 views 4 replies

Shamily das

Student

29 Points Posted on 03 June 2015

Pls clear my doubt,

A partnership firm has closed its restaurant business and is providing oly outdoor catering and the restaurant has no A/c facility.Is the above service a taxable service or will it get exemption under notification 25/2012 ST dated 20.6.2012.

Replies (4)

varun

Business

61 Points Posted on 03 June 2015

Only outdoor catering is taxable service. If restaurant is not charging service charge from customers there is no need to pay ST for restaurant business

varun

Business

61 Points Posted on 03 June 2015

Catering business will be taxable as per the rate mentioned in the notification

DEEPU HN

Associates

360 Points Posted on 03 June 2015

outdoor catering service taxable

Please refer

2C. Determination of value of service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering.- Subject to the provisions of section 67, the value of service portion, in an activity wherein goods being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity at a restaurant or as outdoor catering, shall be the specified percentage of the total amount charged for such supply, in terms of the following Table, namely:-

Table

Sl. No.	Descriptttion	Percentage of the total amount
(1)	(2)	(3)
1.	Service portion in an activity wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of the activity, at a restaurant	40
2.	Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of such outdoor catering	60