19 November 2012
Dear Sir, We are in the business of restaurants and hence forward we will be entering the catering business so i want to know whether service tax will be applicable and if so what will the vat and service tax structure if i am raising the bill for Rs 12,00,000/- all inclusive (ie.lunch @ Rs 1000/- for 1200 persons)
19 November 2012
Yes, Service tax would be chargeable on 60% of total amount i.e value of service will be 60% of total amount of Rs. 1200000 which comes to Rs. 720000 and service tax would be chargeable @12.36% on Rs. 720000.
We are into restaurant industry having air condition in all our outlets but do not have liquor serving licence, we have collected service tax from guests and I want to make the payment if you could please help me with the code under which I need to make the payment
CAclubindia
