Vat rate - hotels and restrants

TN VAT ACT SECTION

7. (1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,- 
 (a) every dealer shall pay tax on the sale of ready to eat unbranded foods including sweets, 
savouries, unbranded non-alcoholic drinks and beverages served in or catered indoors or outdoors by star hotels recognized as such by Tourism Department of the State Government or Government of India and restaurants attached to such hotels at the rate of 14.5% of the taxable turnover; and 

(2) The dealer, who pays tax under clause (a) of sub-section (1) shall be entitled to input tax 
credit on the goods specified in the First Schedule purchased by him in the State.