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Showing 21 to 40 of 204 Records Search Text: restaurant service abatement notification |
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Recent Changes in Notifications, Circulars, Case laws- Analysis The article discusses recent changes in Indian service tax law during 2013-14, highlighting amendments through notifications, circulars, and case laws. It outlines the introduction of arrest powers for tax evasion exceeding INR 50 lakh, with specific conditions and procedures. Key notifications include exemptions for certain services and changes in definitions affecting tax liabilities. Circulars clarify tax applicability on activities like rice processing and services by Resident Welfare Associations. Important case laws address issues such as service tax on composite contracts, Cenvat credit utilization, and reimbursable expenses. The article emphasizes the need for assessees to stay updated to ensure compliance and avoid disputes.
Pre Budget 2013 - ICAI (Indirect tax) The pre-budget 2013 recommendations by ICAI focus on various aspects of indirect taxation, particularly service tax, CENVAT credit rules, central excise duty, and customs duty. Key suggestions include refining definitions to reduce litigation, expanding exemptions for certain services, and aligning service tax laws with international practices. The recommendations also propose procedural simplifications, such as increasing the basic exemption limit for small service providers and streamlining the process for refunds and credits. Additionally, ICAI suggests enhancing the accountability of tax collectors, improving training for departmental personnel, and introducing measures to reduce litigation and enhance revenue collection.
2024 (4) TMI 397 - CESTAT HYDERABAD The Tribunal set aside the impugned order, allowing the appellant's appeal. It held that the appellant was eligible for Cenvat Credit on the 16 specified services and entitled to the benefit of abatement under Notification No. 1/2006-ST. The Tribunal's decision was based on precedent orders from various benches, granting consequential reliefs to the appellant.
2014 (4) TMI 447 - BOMBAY HIGH COURT The Court upheld the constitutionality of Clause (zzzzv) of Section 65(105) of the Finance Act, 2010, dismissing the Writ Petition challenging the Parliament's competence to levy service tax on air-conditioned restaurants serving food and beverages. It held that the service tax did not encroach upon the State's power to levy sales tax, emphasizing the distinction between the two taxes and rejecting claims of double taxation.
Goods and GST Bill passed The discussion on the Goods and Services Tax (GST) Bill highlights its passage in the Rajya Sabha on August 3, 2016, and the subsequent debates and updates regarding its implementation. The GST aims to create a unified tax system by subsuming various indirect taxes. Key issues include the determination of tax rates, with a proposed revenue-neutral rate of 15-15.5% and a standard rate of 17-18%. The GST Council, led by the central finance minister and state finance ministers, is tasked with finalizing these rates. The discourse also covers the challenges of increased compliance, the need for IT infrastructure, and the impact on different sectors. The rollout target was initially set for April 1, 2017, but was later adjusted to July 1, 2017, to allow for smoother transition and preparation.
AIR-CONDITIONED RESTAURANTS TO ATTRACT SERVICE TAX The Finance Act, 2011 imposes a service tax on air-conditioned restaurants licensed to serve alcoholic beverages, effective from May 1, 2011. This tax applies to services related to serving food and beverages, including alcohol. Establishments must have air conditioning at any time during the financial year to qualify. A 70% abatement is provided, excluding certain charges like ex gratia tips and local taxes. The tax targets high-end restaurants where service quality is significant, not merely food sales. Restaurants liable for this tax include those in multiplexes and shopping malls, among others.
AIR-CONDITIONED RESTAURANTS TO ATTRACT SERVICE TAX The Finance Act, 2011 mandates service tax on services provided by air-conditioned restaurants with a license to serve alcoholic beverages, effective May 1, 2011. This applies to any establishment serving food or beverages, including alcohol, with air-conditioning at any time during the financial year. The tax is levied on 30% of the invoice value, after a 70% abatement for deemed sale of food and other costs. Exemptions include VAT, tips, and certain local taxes. Restaurants without air-conditioning or a liquor license are not subject to this tax.
SERVICE TAX ON RESTAURANT SERVICES The Finance Act, 2011, effective from May 1, 2011, imposed a service tax on air-conditioned restaurants with licenses to serve alcoholic beverages. This tax applies to services related to serving food and beverages, including alcoholic drinks. The law allows a 70% abatement on the gross amount charged, excluding sales of goods at MRP, home delivery charges, and tips. The Central Board of Excise and Customs clarified that the tax targets high-end restaurants where service is a significant component of the experience. Restaurants must pay service tax on 30% of the taxable value after claiming the abatement.
UNION BUDGET 2011 AND INDIRECT TAXATION- PART-II The Union Budget 2011 introduced significant changes in indirect taxation, specifically service tax. New taxable services include air-conditioned restaurants serving alcohol and short-term accommodations. The scope of existing services has expanded to cover a broader range of activities, such as life insurance management and legal consultancy. Several exemptions were introduced, including services related to international transport and specific government projects. Amendments to the Finance Act, 1994, and Service Tax Rules, 1994, aim to streamline tax processes and penalties. The Cenvat Credit Rules were also revised to clarify eligible inputs and services, aligning them with business needs and reducing ambiguities.
2023 (5) TMI 808 - CESTAT MUMBAI The Tribunal allowed the appeal, determining that cancellation charges should be considered part of 'Short-term Accommodation Services' and eligible for exemption under Notification No. 26/2012-ST. The classification of cancellation charges as 'Declared Service' under Section 66E(e) was rejected. However, the Tribunal upheld the invocation of the extended period of limitation and the imposition of penalties under Section 78 of the Finance Act, 1994. The appellant's request for cum-tax benefit was denied.
2021 (6) TMI 226 - MADRAS HIGH COURT The court held that the provision of food from air-conditioned restaurants for take-away or in parcels does not attract service tax under the Finance Act, 1994. It was determined that such transactions constitute the sale of food and drink without a significant service component, as indicated by previous appellate decisions and a prevailing view within the tax department. As a result, the writ petitions were allowed, and the challenged orders were set aside.
Minutes of the 32nd GST Council Meeting held on 10th January 2019 The 32nd GST Council Meeting, chaired by the Union Finance Minister, discussed numerous agenda items, including confirmation of previous meeting minutes, ratification of government notifications, and decisions taken by the GST Implementation Committee. Key discussions involved proposals to boost the real estate sector through a composition scheme, rationalizing GST rates on lotteries, and addressing issues in the private security sector. The Council also reviewed amendments to the CGST Act and related laws, discussed the use of RFID data for e-Way bill enforcement, and considered the National Anti-profiteering Authority's quarterly report. The meeting concluded with the approval of recommendations from the Group of Ministers on revenue mobilization.
2018 (11) TMI 1227 - CESTAT ALLAHABAD The Tribunal allowed the appellant's appeal, setting aside the demands and penalties imposed in the impugned Order-in-Original. The Tribunal held that Cenvat credit for construction of hotel services is admissible, service tax availed during specific periods was not adequately proven, abatement under Notification No.01/2006-ST was sustainable, and the demand for interest payment under Section 75 of the Finance Act, 1994 was unsustainable. The decision was made on 20/11/2018.
2017 (4) TMI 852 - CESTAT MUMBAI The Tribunal concluded that the services provided by the appellant, falling within the definition of "Tour Operator," are taxable under the Finance Act. The services were deemed to be provided and consumed in India, rejecting the argument of export of services for outbound tours. The appellant's eligibility for abatement benefits was acknowledged, subject to specified conditions. The Tribunal agreed to extend cum-duty valuation benefits if the demand is confirmed. Penalties were deemed unjustified, with the imposition under statutory discretion. The matter was referred to a larger bench for further examination on the scope of "Tour Operator" and service provision location issues.
Krishi Kalyan Cess – FAQs The Krishi Kalyan Cess (KKC) was introduced by the government to fund agricultural and farmer welfare initiatives, effective June 1, 2016. It imposes a 0.5% levy on the value of all taxable services, raising the total service tax rate to 15%. The cess is credited to the Consolidated Fund of India and utilized as per parliamentary appropriation. KKC is not applicable to exempt services or those in the negative list. Input tax credit for KKC is available for service providers but not for manufacturers. The cess's implementation involves specific accounting codes and impacts campaigns like "Make in India" due to increased costs.
2024 (7) TMI 1074 - CESTAT NEW DELHI The Tribunal concluded that the appellant was not liable for service tax under 'renting of hotels' and 'supply of tangible goods' as the transactions fell under exclusionary clauses. The appellant was eligible for a 40% abatement on service tax for hotel rentals. No penalties under Sections 77 and 78 were imposed due to interpretative issues, resulting in the appeal being allowed and the impugned order set aside.
2023 (10) TMI 1388 - CESTAT MUMBAI - LB The Tribunal determined that the appellant's activities, including organizing pre-planned and customized package tours, are taxable under the amended definition of "tour operator" in the Finance Act, as the services are provided and consumed within India. The earlier decision in Cox & Kings may not apply, and the taxability must be assessed based on the specific facts and legislative intent. Additionally, the services were deemed taxable within the territory as both provider and recipient were in India during the relevant period. The case is remanded to the division bench for a decision on merits, without considering the "taxable territory" issue.
2019 (4) TMI 184 - CESTAT AHMEDABAD The appeal was partly allowed, and the matter was remanded for re-quantification of the demand. The Tribunal found the appellant liable for service tax under Mandap Keeper Services for offering space for conferences with catering and/or rooms. The appellant was granted cum-tax benefit and abatement, with penalties under Section 76 set aside. The extended period of limitation was upheld due to incorrect figures in returns. The Tribunal directed re-quantification based on cum-tax benefit, abatement, and a best judgment method for valuing conference facilities.
Swachh Bharat Cess @ 0.5% on value of all taxable services levied from November 15, 2015 The Swachh Bharat Cess (SB Cess) of 0.5% on the value of all taxable services was introduced effective November 15, 2015, to support Swachh Bharat initiatives. This levy is in addition to the existing 14% service tax, raising the total to 14.5%. The cess does not apply to services on the Negative List or those exempted under Section 93 of the Finance Act, 1994. There are unresolved issues regarding accounting, Cenvat credit, and the impact on ongoing transactions. Clarifications are needed to address these concerns and ensure smooth implementation.
HOTEL INDUSTRY – NEGATIVE LIST IS POSITIVE !!! The introduction of the "Service tax by way of Negative list" on July 1, 2012, marks a significant change in service tax law, especially for the hotel industry. This new scheme allows hotels to benefit from Cenvat Credit along with abatement on services like Mandap Keeper, restaurant, and outdoor catering. Previously, abatement was only available without Cenvat Credit. Now, these services are no longer considered exempt, reducing the proportionate reversal of credit. This change simplifies the tax process and potentially lowers costs for hotels, as they can now opt for a simpler 6% reversal method instead of the complex proportionate reversal.
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