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
CAclubindia
