Hiren Bhandari (CA Practise) (93 Points)
01 April 2013I have a query regarding service tax on Restaurant. Is thier is any aera limit regarding applicability of Service Tax on Restaurants. Accourding to my knowledge their is a limit of 2000 sqr ft.
Is this limit is for Restaurant or for whole hotel or only restaurant hall.
Please Crarify urgent.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 01 April 2013
The limit of 2000 sq ft of carpet area is for real estate industry(i.e. construction service) & moreover, that limit is applicable for residential property only.
No limit has been prescribed for restaurant services as such.
Neha sharma
(-)
(1257 Points)
Replied 01 April 2013
I also have the same query because on my some websites on the internet, it is stated that there is some condition with respect to 2000 sq ft area as well
Hiren Bhandari
(CA Practise)
(93 Points)
Replied 02 April 2013
| Originally posted by : Hiren Bhandari | ||
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I have a query regarding service tax on Restaurant. Is thier is any aera limit regarding applicability of Service Tax on Restaurants. Accourding to my knowledge their is a limit of 2000 sqr ft. Is this limit is for Restaurant or for whole hotel or only restaurant hall. Please Crarify urgent. |
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ya i also read on some sites. Thtas why i want to get clarify.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 02 April 2013
Dear All
Its better to read the bare provisions(rather than relying on the various websites)----Notification no. 25/2012 amended by N/N- 03/2013----for restaurant services which just states citeria of air- conditioning facility
And N/N 26/2012 amended by N/N 02/2013 ----for real estate industry(involved in construction activity), which states the limit of 2000 sq ft of carpet area in case of residential property.
N/N 02/2013 & 03/2013 have been attached here for reference
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