1. As per Notification no. 25/2012 dated 20th June 2012 under Service Tax regulations, Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of airconditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a license to serve alcoholic beverages, were exempted from the levy of service tax so far.
2. However, this exemption will now be available only to non air-conditioned or noncentrally air-heated restaurants. The dual requirement that it should also have a license to serve alcohol is being done away with now. Therefore, service tax will be leviable on taxable services provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year, whether the same serves liquor or not.
3. No specific definition of "Restaurant" has been prescribed under the service tax regulations containing any limitation to any area, no. of seats or otherwise. It covers all restaurants, eating joints or a mess. Therefore, it seems to cover almost all the following categories of restaurants, having the facility of air conditioning or central air heating in any part of the establishment at any time during the year:
- Restaurants
- Cafes
- Food Courts
- Food Kiosks
- Pubs etc.
Effective Date:
4. The effective date of the above mentioned amendment shall be 1st April 2013.
Registration Requirements:
5. All taxable service providers are required to get registered with the service tax authorities in case the aggregate taxable turnover exceeds Rs. 9.00 lacs (Rs. Nine Lacs) in any financial year. The service tax is required to be charged as and when the taxable turnover exceeds Rs. 10.00 lacs (Rs. Ten Lacs) in any financial year.
6. In other words, no registration is required up to the taxable turnover of Rs. 9.00 lacs. The registration gets triggered upon achieving the turnover of Rs. 9.00 lacs and the service tax is required to be levied upon exceeding the turnover of Rs. 10.00 lacs.
Rate of Service Tax:
7. Rate of Service Tax would be 40% of 12.36% i.e. 4.944% of the total bill amount including Service charges but excluding VAT levied on food / beverages served.
Example:
It may be noted that this is an example which explains the calculation of Service Tax. Figures are representative. The actual VAT rate would differ from state to state and should be charged accordingly.
(a) Food & Beverages : Rs. 1,000.00
(b) Service Charges : Rs. 100.00
(c) Total : Rs. 1,100.00
(d) VAT @ 14.50% : Rs. 159.50 ( Not Applicable For Liquor Sale)
(e) Total amount before Service Tax : Rs.1259.50
(f) Service Tax Rate : 12.36%
(g) Service Portion :40% Of The Sales
(h) Net Service Tax Rate : 40% of 12.36% = 4.94%
(j) Amount chargeable for Service Tax : Rs. 1100.00
(Total amount before Service Tax less VAT)
(k) Total amount of Service Tax : 4.94% of Rs. 1100.00 = Rs. 54.34
(l) Total amount payable by Customer : Rs.1313.84 (1259.50 + 54.34)
2. However, this exemption will now be available only to non air-conditioned or noncentrally air-heated restaurants. The dual requirement that it should also have a license to serve alcohol is being done away with now. Therefore, service tax will be leviable on taxable services provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year, whether the same serves liquor or not.
3. No specific definition of "Restaurant" has been prescribed under the service tax regulations containing any limitation to any area, no. of seats or otherwise. It covers all restaurants, eating joints or a mess. Therefore, it seems to cover almost all the following categories of restaurants, having the facility of air conditioning or central air heating in any part of the establishment at any time during the year:
- Restaurants
- Cafes
- Food Courts
- Food Kiosks
- Pubs etc.
Effective Date:
4. The effective date of the above mentioned amendment shall be 1st April 2013.
Registration Requirements:
5. All taxable service providers are required to get registered with the service tax authorities in case the aggregate taxable turnover exceeds Rs. 9.00 lacs (Rs. Nine Lacs) in any financial year. The service tax is required to be charged as and when the taxable turnover exceeds Rs. 10.00 lacs (Rs. Ten Lacs) in any financial year.
6. In other words, no registration is required up to the taxable turnover of Rs. 9.00 lacs. The registration gets triggered upon achieving the turnover of Rs. 9.00 lacs and the service tax is required to be levied upon exceeding the turnover of Rs. 10.00 lacs.
Rate of Service Tax:
7. Rate of Service Tax would be 40% of 12.36% i.e. 4.944% of the total bill amount including Service charges but excluding VAT levied on food / beverages served.
Example:
It may be noted that this is an example which explains the calculation of Service Tax. Figures are representative. The actual VAT rate would differ from state to state and should be charged accordingly.
(a) Food & Beverages : Rs. 1,000.00
(b) Service Charges : Rs. 100.00
(c) Total : Rs. 1,100.00
(d) VAT @ 14.50% : Rs. 159.50 ( Not Applicable For Liquor Sale)
(e) Total amount before Service Tax : Rs.1259.50
(f) Service Tax Rate : 12.36%
(g) Service Portion :40% Of The Sales
(h) Net Service Tax Rate : 40% of 12.36% = 4.94%
(j) Amount chargeable for Service Tax : Rs. 1100.00
(Total amount before Service Tax less VAT)
(k) Total amount of Service Tax : 4.94% of Rs. 1100.00 = Rs. 54.34
(l) Total amount payable by Customer : Rs.1313.84 (1259.50 + 54.34)
1.
As per Notification no. 25/2012 dated 20th June 2012 under Service Tax
regulations, Services provided in relation to serving of food or
beverages by a restaurant, eating joint or a mess, other than those
having (i) the facility of airconditioning or central air-heating in any
part of the establishment, at any time during the year, and (ii) a
license to serve alcoholic beverages, were exempted from the levy of
service tax so far.
2. However, this exemption will now be available only to non air-conditioned or noncentrally air-heated restaurants. The dual requirement that it should also have a license to serve alcohol is being done away with now. Therefore, service tax will be leviable on taxable services provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year, whether the same serves liquor or not.
3. No specific definition of "Restaurant" has been prescribed under the service tax regulations containing any limitation to any area, no. of seats or otherwise. It covers all restaurants, eating joints or a mess. Therefore, it seems to cover almost all the following categories of restaurants, having the facility of air conditioning or central air heating in any part of the establishment at any time during the year:
- Restaurants
- Cafes
- Food Courts
- Food Kiosks
- Pubs etc.
Effective Date:
4. The effective date of the above mentioned amendment shall be 1st April 2013.
Registration Requirements:
5. All taxable service providers are required to get registered with the service tax authorities in case the aggregate taxable turnover exceeds Rs. 9.00 lacs (Rs. Nine Lacs) in any financial year. The service tax is required to be charged as and when the taxable turnover exceeds Rs. 10.00 lacs (Rs. Ten Lacs) in any financial year.
6. In other words, no registration is required up to the taxable turnover of Rs. 9.00 lacs. The registration gets triggered upon achieving the turnover of Rs. 9.00 lacs and the service tax is required to be levied upon exceeding the turnover of Rs. 10.00 lacs.
Rate of Service Tax:
7. Rate of Service Tax would be 40% of 12.36% i.e. 4.944% of the total bill amount including Service charges but excluding VAT levied on food / beverages served.
2. However, this exemption will now be available only to non air-conditioned or noncentrally air-heated restaurants. The dual requirement that it should also have a license to serve alcohol is being done away with now. Therefore, service tax will be leviable on taxable services provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year, whether the same serves liquor or not.
3. No specific definition of "Restaurant" has been prescribed under the service tax regulations containing any limitation to any area, no. of seats or otherwise. It covers all restaurants, eating joints or a mess. Therefore, it seems to cover almost all the following categories of restaurants, having the facility of air conditioning or central air heating in any part of the establishment at any time during the year:
- Restaurants
- Cafes
- Food Courts
- Food Kiosks
- Pubs etc.
Effective Date:
4. The effective date of the above mentioned amendment shall be 1st April 2013.
Registration Requirements:
5. All taxable service providers are required to get registered with the service tax authorities in case the aggregate taxable turnover exceeds Rs. 9.00 lacs (Rs. Nine Lacs) in any financial year. The service tax is required to be charged as and when the taxable turnover exceeds Rs. 10.00 lacs (Rs. Ten Lacs) in any financial year.
6. In other words, no registration is required up to the taxable turnover of Rs. 9.00 lacs. The registration gets triggered upon achieving the turnover of Rs. 9.00 lacs and the service tax is required to be levied upon exceeding the turnover of Rs. 10.00 lacs.
Rate of Service Tax:
7. Rate of Service Tax would be 40% of 12.36% i.e. 4.944% of the total bill amount including Service charges but excluding VAT levied on food / beverages served.
Example:
It
may be noted that this is an example which explains the calculation of
Service Tax. Figures are representative. The actual VAT rate would
differ from state to state and should be charged accordingly.
(a) Food & Beverages : Rs. 1,000.00
(b) Service Charges : Rs. 100.00
(c) Total : Rs. 1,100.00
(d) VAT @ 14.50% : Rs. 159.50
(e) Total amount before Service Tax : Rs.1259.50
(f) Service Tax Rate : 12.36%
(g) Abatement : 60%
(h) Net Service Tax Rate : 40% of 12.36% = 4.94%
(j) Amount chargeable for Service Tax : Rs. 1100.00
(Total
amount before Service Tax less VAT)
(k) Total amount of Service Tax : 4.94% of Rs. 1100.00 = Rs. 54.34
(l) Total amount payable by Customer : Rs.1313.84 (1259.50 + 54.34)
- See more at: http://www.nrai.org/service-tax#sthash.rBdIfrNe.dpuf
1.
As per Notification no. 25/2012 dated 20th June 2012 under Service Tax
regulations, Services provided in relation to serving of food or
beverages by a restaurant, eating joint or a mess, other than those
having (i) the facility of airconditioning or central air-heating in any
part of the establishment, at any time during the year, and (ii) a
license to serve alcoholic beverages, were exempted from the levy of
service tax so far.
2. However, this exemption will now be available only to non air-conditioned or noncentrally air-heated restaurants. The dual requirement that it should also have a license to serve alcohol is being done away with now. Therefore, service tax will be leviable on taxable services provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year, whether the same serves liquor or not.
3. No specific definition of "Restaurant" has been prescribed under the service tax regulations containing any limitation to any area, no. of seats or otherwise. It covers all restaurants, eating joints or a mess. Therefore, it seems to cover almost all the following categories of restaurants, having the facility of air conditioning or central air heating in any part of the establishment at any time during the year:
- Restaurants
- Cafes
- Food Courts
- Food Kiosks
- Pubs etc.
Effective Date:
4. The effective date of the above mentioned amendment shall be 1st April 2013.
Registration Requirements:
5. All taxable service providers are required to get registered with the service tax authorities in case the aggregate taxable turnover exceeds Rs. 9.00 lacs (Rs. Nine Lacs) in any financial year. The service tax is required to be charged as and when the taxable turnover exceeds Rs. 10.00 lacs (Rs. Ten Lacs) in any financial year.
6. In other words, no registration is required up to the taxable turnover of Rs. 9.00 lacs. The registration gets triggered upon achieving the turnover of Rs. 9.00 lacs and the service tax is required to be levied upon exceeding the turnover of Rs. 10.00 lacs.
Rate of Service Tax:
7. Rate of Service Tax would be 40% of 12.36% i.e. 4.944% of the total bill amount including Service charges but excluding VAT levied on food / beverages served.
2. However, this exemption will now be available only to non air-conditioned or noncentrally air-heated restaurants. The dual requirement that it should also have a license to serve alcohol is being done away with now. Therefore, service tax will be leviable on taxable services provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year, whether the same serves liquor or not.
3. No specific definition of "Restaurant" has been prescribed under the service tax regulations containing any limitation to any area, no. of seats or otherwise. It covers all restaurants, eating joints or a mess. Therefore, it seems to cover almost all the following categories of restaurants, having the facility of air conditioning or central air heating in any part of the establishment at any time during the year:
- Restaurants
- Cafes
- Food Courts
- Food Kiosks
- Pubs etc.
Effective Date:
4. The effective date of the above mentioned amendment shall be 1st April 2013.
Registration Requirements:
5. All taxable service providers are required to get registered with the service tax authorities in case the aggregate taxable turnover exceeds Rs. 9.00 lacs (Rs. Nine Lacs) in any financial year. The service tax is required to be charged as and when the taxable turnover exceeds Rs. 10.00 lacs (Rs. Ten Lacs) in any financial year.
6. In other words, no registration is required up to the taxable turnover of Rs. 9.00 lacs. The registration gets triggered upon achieving the turnover of Rs. 9.00 lacs and the service tax is required to be levied upon exceeding the turnover of Rs. 10.00 lacs.
Rate of Service Tax:
7. Rate of Service Tax would be 40% of 12.36% i.e. 4.944% of the total bill amount including Service charges but excluding VAT levied on food / beverages served.
Example:
It
may be noted that this is an example which explains the calculation of
Service Tax. Figures are representative. The actual VAT rate would
differ from state to state and should be charged accordingly.
(a) Food & Beverages : Rs. 1,000.00
(b) Service Charges : Rs. 100.00
(c) Total : Rs. 1,100.00
(d) VAT @ 14.50% : Rs. 159.50
(e) Total amount before Service Tax : Rs.1259.50
(f) Service Tax Rate : 12.36%
(g) Abatement : 60%
(h) Net Service Tax Rate : 40% of 12.36% = 4.94%
(j) Amount chargeable for Service Tax : Rs. 1100.00
(Total
amount before Service Tax less VAT)
(k) Total amount of Service Tax : 4.94% of Rs. 1100.00 = Rs. 54.34
(l) Total amount payable by Customer : Rs.1313.84 (1259.50 + 54.34)
- See more at: http://www.nrai.org/service-tax#sthash.rBdIfrNe.dpuf
(a) Food & Beverages : Rs. 1,000.00
(b) Service Charges : Rs. 100.00
(c) Total : Rs. 1,100.00
(d) VAT @ 14.50% : Rs. 159.50
(e) Total amount before Service Tax : Rs.1259.50
(f) Service Tax Rate : 12.36%
(g) Abatement : 60%
(h) Net Service Tax Rate : 40% of 12.36% = 4.94%
(j) Amount chargeable for Service Tax : Rs. 1100.00
(Total
amount before Service Tax less VAT)
(k) Total amount of Service Tax : 4.94% of Rs. 1100.00 = Rs. 54.34
(l) Total amount payable by Customer : Rs.1313.84 (1259.50 + 54.34)
- See more at: http://www.nrai.org/service-tax#sthash.rBdIfrNe.dpuf
No comments:
Post a Comment