Service valuation restaurent
This query is : Resolved
21 May 2012
http://www.servicetax.gov.in/notifications/notfns-2012/st11-2012.htm
Please see Rule 2C in the above Budget notification.. What effect does it have on the valuation of restaurent service??
Also there is another notifiation which is as follows
http://www.servicetax.gov.in/notifications/notfns-2012/st13-2012.htm
Point 4 of this notification gives abatement..
So then what will be total Service Tax after both these notifications on a Bill of Rs. 10000(Ten thousand)
Please see Rule 2C in the above Budget notification.. What effect does it have on the valuation of restaurent service??
Also there is another notifiation which is as follows
http://www.servicetax.gov.in/notifications/notfns-2012/st13-2012.htm
Point 4 of this notification gives abatement..
So then what will be total Service Tax after both these notifications on a Bill of Rs. 10000(Ten thousand)
21 May 2012
Dear User,
Service portion in the supply of food or any other article of human consumption or drink at a restaurant- Existing taxable portion was-30%, Proposed taxable portion is-40%
if above service is provided from a premises elsewhere(outdoor catering)-Existing taxable portion- 50%, Proposed taxable portion-60%.
No cenvat credit will be allowed. Earlier it was 70% abatement now it is only 60% and notification 13 is to be reconsidered.
Service portion in the supply of food or any other article of human consumption or drink at a restaurant- Existing taxable portion was-30%, Proposed taxable portion is-40%
if above service is provided from a premises elsewhere(outdoor catering)-Existing taxable portion- 50%, Proposed taxable portion-60%.
No cenvat credit will be allowed. Earlier it was 70% abatement now it is only 60% and notification 13 is to be reconsidered.
21 May 2012
What do u mean by reconsidered?
Regards
Regards
21 May 2012
These notification shall come into force from the date on which section 66B of the Finance Act, 1994 comes into effect
21 May 2012
As far as I am aware of that 70% abatement is not correct and will be corrected to 60%. Beceause earlier it was 70% but now it s changed to 60%.
21 May 2012
See B.1.18- of D.O.F. No 334/1/2012-TRU- Union Budget 2012: Changes in Service Tax-reg.
21 May 2012
The query is why there is two similar provisions for same service of food supply, one under a Notification and another in Valuation Rules. What is logic behind it or purpose of it.....
22 May 2012
Dear Mr. Nikhil,
I explained what i have enterpreted and construed from the 2 notifications.
if you can explain it better than you are welcome.
I explained what i have enterpreted and construed from the 2 notifications.
if you can explain it better than you are welcome.
22 May 2012
Dear Mr. Amit,
You have got it wrong. I ma not answering the qury. Infact I am also asking this question. I need a simple clarification. It is matter of fact that for particular activity there will be only single provision in the Law. But why for this service of Food supply, there is two similar provisions. ....Because it seems that purpose of both these notifications is same to provide the rates of abatement.
You have got it wrong. I ma not answering the qury. Infact I am also asking this question. I need a simple clarification. It is matter of fact that for particular activity there will be only single provision in the Law. But why for this service of Food supply, there is two similar provisions. ....Because it seems that purpose of both these notifications is same to provide the rates of abatement.
22 May 2012
Dear Mr. Nikhil,
That is what I want to explain as at one place abatement of 70% is given and at other place taxable portion 40% is given.
The abatement given in this aspact needs to be reconsidered.
There are other abatements also not provided in this list like
75%/67% abatement in case on construction of complex service.
That is what I want to explain as at one place abatement of 70% is given and at other place taxable portion 40% is given.
The abatement given in this aspact needs to be reconsidered.
There are other abatements also not provided in this list like
75%/67% abatement in case on construction of complex service.
22 May 2012
I have gone through both Notifications and your observation about the rate is right. But Cant the Government merge both the provisions at a single place rather than giving a two places.... May be it happens one they come into effect.
23 May 2012
What do you mean by when they will come into effect?
Arent they in effect from 1 April, 2012.
Arent they in effect from 1 April, 2012.
23 May 2012
What do you mean by when they will come into effect?
Arent they in effect from 1 April, 2012.
Arent they in effect from 1 April, 2012.
23 May 2012
No, It is not yet effective. They shall come into force from the date on which section 66B of the Finance Act, 1994 comes into effect.
23 May 2012
Then what is the current rate on Restaurant?
23 May 2012
At present, rate are as follows-
1.Service portion in the supply of food or any other article of human consumption or drink at a restaurant- Taxable portion is 30%.
2.S.No.1 provided from a premises elsewhere(outdoor catering)-Taxable portion is 50%.
1.Service portion in the supply of food or any other article of human consumption or drink at a restaurant- Taxable portion is 30%.
2.S.No.1 provided from a premises elsewhere(outdoor catering)-Taxable portion is 50%.
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