Applicability of service tax housekeeping and restaurant

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 Hi,
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.

CA Suresh Jain

CA Suresh Jain (Expert)
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02 August 2013 1.and 2. any service which is provided out side his premises of the service provider is out-door catering.
3. the position will not alter due to providing house keeping service to the same service recipient

Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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02 August 2013 Hi

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

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 Dear Gopalkrishna,

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.

Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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05 August 2013 In my opinion.

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.

CA Suresh Jain

CA Suresh Jain (Expert)
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05 August 2013 The word restaurant is not defined in the service tax act or rules.
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

Querist : Anonymous (Querist)

06 August 2013 Thanks for valuable opinions