Service tax rate

Friends / Collegues,

I would like to know that since restaurants which are centrally air-conditioned, Service portion in an activity wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of the activity,  at a restaurant is 40% of the gross bill amount i.e. 60% abatement.

 

Now, that the service tax rates has been revised to 12% + cess totallting to 12.36%, so service tax is supposed to be charged @ 12.36% * 40% which equals to 4.944%, right?

 

I have been to restaurants which are still charging @ 3.6%.

 

Kindly clear the doubt please. Thank you

Replies (5)

yes service tax rate will be 40% of 12.36% i.e.4.944% only

You correct my friend; you are aware of the law but unfortunately, the restaurant is not.

agree with Vikas

I corrected my client.. I am not supposed to correct his neighbouring restaurants..

Originally posted by : CA Ankit Totla

I corrected my client.. I am not supposed to correct his neighbouring restaurants..

I think you did the right thing...

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