Applicability of Service Tax

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Amar Shrikhande (Querist)
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11 March 2011
As per amendments of finance act 2011, Service Tax is being imposed on Services provided by air-conditioned restaurants having a license to serve alcoholic beverages in relation to serving of food and /or beverages.

One of our client having air-conditioned restaurants & licence to serve the alcoholic beverages. The restaurants also attached garden, he sales his product in AC rooms as well in garden also, where will service tax apply as per new laws ? Only in sales in AC rooms or AC rooms as well in gardens also?

Waiting for your valuable suggestion!!!!!!!!!!!

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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11 March 2011 Any service provided by such restaurants, in relation to serving of foods or beverages in its premises is taxable.Since the garden is within the premises, it is covered.