Service tax on taken away food

What is take away goods? Whether Service Tax is charged on taken away goods for A/C Restaurant?

Replies (9)

When we visit any restaurant or eating joint and order food to be packed to be taken away for eating elsewhere is take away food. In my view, such take away food is not taxable. 

Take away goods are packaged goods having MRP printed on them. As, these are take away goods, the customer does not take the benefit of A/c service and hence no ST is required to be charged. Further, there is no service element and is purely in the nature of sale of goods.

Thank You manoj Sir and Muskan mam

In my point of view , air-conditioned restaurants or fast-food outlets, such as McDonald’s or Pizza Hut, which provide takeaway services will not get any service tax relief till date and liable to pay service tax if such facilities are provided at the same shop where one can sit and eat or drink beverages.

 If goods are sold on MRP basis (fixed under the Legal Metrology Act), these have to be excluded from the  total amount for the determination of value of the service portion.

There is  liability to collect service tax on takeaway goods for air conditioned and Luxurious Restaurant. right???? is it also 4.94% service tax on takeaway food??

 

air-conditioned restaurant

Read more at: /forum/details.asp?mod_id=269659#.UnTLFFMUWho
air-conditioned restaurants

Read more at: /forum/details.asp?mod_id=269659#.UnTLFFMUWho
air-conditioned restaurants

Read more at: /forum/details.asp?mod_id=269659#.UnTLFFMUWho

right, its 4.94%

Yes, the effective rate of Service Tax on AC Restaurant is 4.944% (i.e. 12.36% of 40% Value) as per Service Tax (Determination of Value) Rules, 2006.

 

The latest Circular No. 173/8/2013-ST dated 7-10-13 which has clarified at Doubt - 3 that if goods are sold at MRP basis (fixed under the Legal Metrology Act)  they have to be excluded from total amount for the determination of value of service portion. Regarding the same, i had send letter to Shri V.K. Garg, Joint Secretary, TRU, CBEC some 4 months back. My contention is whether MRP or not, any goods which the restaurant purchase and sell as it is, (like cold drinks, chips, frozen food, etc) is trading activity covered under Negative List and outside the scope of service tax. Even if the goods are sold at above MRP (in violation of other laws), the character of the transaction is not changed and it remains trading activity. Unfortunately, the TRU never reverted on my communication.

Kindly visit the link for detailed discussion on the subject by various experts.

 

https://lnkd.in/-iy45n

THANK YOU SIR..

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details