Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Restaurant Business

18 November 2019

A dealer engaged in Restaurant Business and is a regular dealer and he is going with 5 %scheme so can he collect the Tax from the customers when he is not taking ITC or he should not collect 5%Tax.

Reply
Follow
Share

5 Replies

Anshika Aggarwal (Chartered Accountant) (186 Points)
Replied 18 November 2019

Yes, 5% tax will be collected from customer but you can not take any credit.

Upgrade to CAclubindia Pro. Subscribe Now!

Hitesh rawal (402 Points)
Replied 18 November 2019

Ok whats the section for this

Sivaramakumar (GM-ACCOUNTS) (142 Points)
Replied 18 November 2019

Standalone restaurants are eligible to collect tax at 5% with no ITC. If you have opted for composition scheme then you are not eligible to collect tax and the availment of ITC does not arise