CA Final Student
137 Points
Joined July 2012
Notification 03/2013 amends exemption notification as follows:
“Entry 19: Services provided in relation to serving of food or beverages by 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”
Eg.: A company has a building with 4 floors, in which 1 floor has canteen and the rest have offices. The offices are air conditioned whereas the canteen is not. Here, canteen services shall be taxable merely by the fact that the establishment in which it is situated is air conditioned.
Therefore, even in your case, exemption is not available and service tax shall be charged on 40% of the taxable value of services. In my opinion, a separate registration will not give you the benefit of exemption from service tax since the exclusion part of entry 19, (in any part of the establishment) shall still hold good. For further clarification in this regard, will revert to you soon.