I have a query. whether service tax is applicable on sales made by restaurants on account of Take Away/ Home Delivery ? If yes, can anybody provide me some notification/ circular.
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Service tax on ta/ hd
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S.No. 19 of Notification no. 25/2012(amended by 03/2013) reads out as follows:
"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 airconditioning or central air-heating in any part of the establishment, at any time during the year;”
In my opinion, on home delivery, no service tax should be levied, since the word used is---"Serving", whereas in case of home delivery, it is just the supply of food and not serve.
However, on a safer side, majority of restaurants are charging service tax even on home delivery.
Because, you never know, when the govt. may insert a retrospective explanation in the aforesaid provision.
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