Implimentation of service tax on ac restaurants

This query is : Resolved

M M Mokashi (Querist)
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24 May 2013 A service tax has been applicable to restaurants which is having air condition w.e.f 1.4.13
"my query is if we remove the AC & install water air cooler system then it attract the service tax nor not??(we serve food & soft drinks only no liquor)"

CA Vikas Acharya

CA Vikas Acharya (Expert)
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25 May 2013 yes you have thought good, but as per rule if AC used for any time in a year, service tax will be there. meaning there by even if for a single day.

though if you have not registered yet and you think you can take the risk, do it b4 u come under eyes of service tax officers.
(though it just avoidance of tax and not planning, it could be planning from next year)
you can do this practice from next year.

liquor is no more relevant after 1.4.13