one of my client is running restaurant service and he has no lodging facility but provide both food,beverages and liquor services. what is the abatement % applicable and what if they also provide banquet hall service , because a new banquet hall is ready for operation.
following are provisions for good, beverages and liquor services:
1. Food, Beverages etc supplied in restaurant- 60% abatement is available so service tax is payable on 40% of the total value. 2. Food, beverages etc supplied in outdoor catering- 40% abatement is available so service tax is payable on 60% of the total value. 3. Bundle service by way of supply of food, beverages etc with renting of premises (like hotel, conventional club, etc specially arranged for organizing a function)- service tax is payable on 70% of total value for complete bundle service 4. Renting of hotels, inns, guest house etc for lodging purposes- service tax is payable on 60% of total value.
following are exempted-
1. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages;
2. Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;
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