Hello,
Taxable Head: Restaurant Services
If I open a restaurant which serves alcohol beverages and food but does not have the air-conditioner facility at all, is it liable to Service Tax?
4 Replies
CA Swapnil Arora
(Chartered Accountant)
(80 Points)
Replied 22 June 2012
What I have learned so far, Food and beverages at restaurant are charged to VAT and not Service Tax...
One Judgement, however not fully in agreement with your case, is of IRCTC Ltd (2011)...
This mainly consist of sale element rather than being service.
Still wait for the replies of experts...
yashsr
(CA)
(2285 Points)
Replied 22 June 2012
| Originally posted by : Swapnil Arora | ||
 |
What I have learned so far, Food and beverages at restaurant are charged to VAT and not Service Tax... One Judgement, however not fully in agreement with your case, is of IRCTC Ltd (2011)... This mainly consist of sale element rather than being service. Still wait for the replies of experts... |
 |
https://www.servicetaxonline.com/content.php?id=1467
30% is considered taxable as service.
CA Swapnil Arora
(Chartered Accountant)
(80 Points)
Replied 22 June 2012
but ST will be payable only if it is an AC Restaurant...Hence I believe in your case , only VAT is payable...
Rakshit
(practising)
(338 Points)
Replied 24 June 2012
Service Tax is only applicable if both the following conditions are satisfied:
1. Air conditioned restaurant/premises and
2. A license to serve alcoholic liquour
If either of the one is not there, Service Tax is not applicable
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