26 November 2013
Serving of food items are covered under two service heads - outdoor catering and restaurant services.
Outdoor Catering Services relate to party catering services where the service provider serves guest at a part or provides services like to railways, airlines services.
Restaurant Services cover serving of food items in air-conditioned places. If the ice cream parlour is air conditioned then you are liable to pay service tax, otherwise not.
Please do not ask for logic, because "The law, Honorable Lords, is an ass" and I may with due respect add "Prized Ass".
The rate of taxation for Restaurant Service is on 40% of the bill amount or 4.944%.
CAclubindia
