02 July 2016
Is catering business taxable under service tax ? If yes what is the abatement ? On what basis exemption limit is calculated..... If Total value of service is Rs.17,00,000 then the value of taxble service is (17,00,000-10,00,000) = Rs. 7,00,000 or Rs. 17,00,000 - (17,00,000*Abatement Rate) ? Please guide me.
02 July 2016
No service tax applicable on Catering business in own non AC restaurant. No service tax on take away catering service. Service tax at 15% on 60% value(40% abatement) payable on out door catering service. Service tax payable only if 17,00,000-(17,00,000*abatement rate) exceeds 10 lacs. For AC restaurant 60% is the abatement rate.
CAclubindia
