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Service tax on sale by restaurant

Bhaskar jyoti Patowary (Querist) (35 Points)

19 September 2014

Hello everybody One restaurant sales food cooked by them in packet. Will this activity attract service tax or VAT?

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2 Replies

Saurabh (CA - Grand Finale) (71 Points)
Replied 20 September 2014

VAT is definitely payable as it is a Deemed Sale transaction as per Article 366(29A)(f) of the constitution.

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CA Ashish K Bansal (partner) (175 Points)
Replied 20 September 2014

The logic behind service tax on restaurant is that there us an embedded se4vice element as thry serve the food privude eating space Tax on restaurant service is still subjudice in your case if they are providing packed foods for not eating at restaurant you can only pay vat and show the amount as sale though department may take different view