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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.

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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.

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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