https://www.servicetax.gov.in/notifications/notfns-2012/st25-2012.htm.
The exemption notification given here in case of point 19 says service tax is exempted unless 1)it is air conditioned or centrally air heated 2) it has license to serve alcoholic items.
My client has got a bar cum restaurant where there is no air conditioning. Is he liable to service tax?
Hi Arka,
The exemption notification that you have referred, has been amended vide Notification No.3/2013-ST dated 1 March 2013, effective from 1 April 2013, which states -
"19. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year;"
Hence, in my view, the said exemption should be available to you.
Refer Service Tax Circular on the subject
https://www.servicetax.gov.in/circular/st-circular13/st-sirc-173-2013.htm
If there is both AC and NON AC restuarant within same premises separate name may be required to claim exemption
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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