Service tax on Restaurants ( May 1, 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)

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....

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details