04 February 2016
yes,we can follow the chandigarh clarification,
Similar Clarification on the stated matter is much needed from the Central Board of Excise and Customs (“CBEC”), so that it could be made applicable uniformly throughout, irrespective of the jurisdiction of particular Department.
LETTER C.NO.ST-20/STD/MISC./SEVOTTAM/62/12/4693, DATED 13-8-2015
Where It is clarified that in case of the transaction involving Pick -up or the Home Deliveries of the food sold by the Restaurant, the dominant nature of the transaction is that of sale and not service as the food is not served at the Restaurant and further no other element of service which is offered at the Restaurants, be it ambience, live entertainment, if any, air conditioning, or personalized hospitality is offered.
The Service Tax can be levied if there's an element of 'Service' involved which would typically the case where food is served in restaurant.
The above transaction is not liable to Service Tax, being sale in nature, only if, no amount is charged for such free delivery of food.
CAclubindia
