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Service tax on take away orders

Rohit Agrawal (student) (125 Points)

12 September 2015

Is Service tax chargeable on take away orders?

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6 Replies

Sirajudeen (Proprietor) (24 Points)
Replied 13 September 2015

No. Service tax is applicable for dine in sales only.

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Rohit Agrawal (student) (125 Points)
Replied 13 September 2015

what to do if charged on my take away bill.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 September 2015

Dominoz has a fixed set of tax chart, and its mostly based on "home delivery" they cant make change for each customer a seperate set of tax chart, however u might have got a considerable replenishment in form of discounts or suppliments, in your bill it clearly displays that they have given you 100% discount on 1st item, on which you have neither paid vat nor any service tax,

Vikas (CA) (1135 Points)
Replied 14 September 2015

Dear Rohit,

Once Service tax is charged, it is your liability to pay Service tax, irrespective of its taxability.

Vishal Dhingra (1 Points)
Replied 04 October 2015

There is no service tax applicable in case of take away/ free home delivery as there is no element of service. There is only VAT applicable.

However many restaurants levy service tax on take aways as a conservative approach. Kindly refer circular dated 13.08.2015 from deputy commissioners office, Chandigarh

Even i am being charged for service tax on take away

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 05 October 2015

Once again I need your attention, as the burden goes to the vendor to establish that they have NOT served "in house" which is tough on their part, as to maintain it they have to maintain separate billing module for each catagory,

Here you got two pizza of 405 each, whatsoever is your discout is appiicable on the main price only, not on taxes, in case of discount coupans applied also, they have to charge VAT on 405+405=810, where as they have charged ST and VAT on one pizza only, so in gross the customer is in win win situation, and they have not to change their billing module also.

PS: I have discussed the issue with my local dominoz also, and found that take away and home delivery is catagorized in same module by them, but in home delivery they charge on gross, and allow the discount on basic only, means customer has saved 28/- more over the deal , (50.63 - 22.68)