Service tax on Restaurants ( May 1, 2011)

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B Avinash Shanbhogue

Sole Proprietor

31 Points Posted on 02 May 2011

Kindly help me out with a query.

Air conditioned restaurants with a licence to servce alcoholic beverages have been brought under servcie tax from may 1, 2011.

In case the restaurant is part of a hotel and the bar licence is in the name of a hotel and the hotel has other sales outlets in the same building that do not serve alcohol or are not having air conditioning, whether the servcie tax is only applicable for the particular sales outlet or restaurant that serves alcohol and has an AC OR does it apply to all sales outlets in the building?

Thank you for your support.

Regards

Replies (2)

Harpreet

* * * * * *

1941 Points Posted on 02 May 2011

Pls check the taxable services under CBEC (Central Board of Excise and Custom) whether the services are taxable or not which are provided by your company on anothr floor of the building. As you do not mentioned what kind of services you (company) provided if the retail business is running over there then you are liable to pay Sales Tax thereon if specified limit cross....

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 02 May 2011

These type of queries maybe made directly to the CBEC as they are expected to clarify such diverse practices - how to deal?

Seoncdly this levy is expected tobe challneged as it is a settled matter that the sale of bood + beverages is only a sale. If at all there is a service it is incidental. However the SC after a year or so may resolve this issue.

Please claim the exemption of Rs. 10 lakhs and if matter not clear til;l then [ not expected] then register and pay under protest.