Applicability of service tax housekeeping and restaurant
Querist : Anonymous
One of my client got contract from one resort as follows.
He will receive a lump sum amount for providing service in relation to housekeeping of rooms and running of restaurant and providing food in rooms and club house and other area of resort.Here he will borne salary and daily grossary and other expenses.
Now,my query is regarding determination of value of service.
In which category it will fall
a.)As restaurant Service- Taxable Value 40%
b.)As Outdoor Catering Service- Taxable Value 60%
c.)Will housekeeping of rooms will make any difference in above two option.
3. the position will not alter due to providing house keeping service to the same service recipient
Please clarify the following
1) List of services which is mentioned in Service Tax Registeration certificate
2) How is the Billing being done, either separately for housekeeping and outer catering. Even though the client has received the lumpsum amount for the same
Querist : Anonymous
1)New entity is formed for this contract so registration is not taken.
2)No seprate billing will be done, still we can insist for seprate billing is require.
Services Provided in relation to serving of food restaurant or beverages by a restaurant, eating joint or a mess having the facility of air conditioning or central air heating in any part of establishment, at any time during the year
Hence the condition is that the restaurant should have air condition facility, if the same is not there it would not be subject to service tax. Hence applying 40% doesnot apply
So we need to go in detail to understand the facts.
I agree with Mr. Gopalkrishna to the extend that if the canteen in the factory could be called a restaurant and Air conditioner is not there in the whole of the premises the serrvice could be not taxable.
We need to see the agreement between the service provider and the factory to advise correctly
Querist : Anonymous
Click here to login now
Similar Resolved Queries
- Applicability
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Gst Sales of FY 2023-24
- Legal heir raised refund , but refund issued to the closed account of deceased.
- My Last working day in current org is in novemebr 2024 but they are asking me to submit IT proof
- Indexation benefit applicability
- SEC 54 OF IT ACT
- Passed group 2 exams under wrong gender
- REQUIREMENT OF 15CB
- QUERY FOR RCM ON RENT
- APPEAL-CIT
- Payable outstanding for years disallowance
- Whether still royalty
- Issue of gst e invoice
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
