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Showing 81 to 100 of 204 Records Search Text: restaurant service abatement notification |
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2015 (11) TMI 1044 - CESTAT NEW DELHI The appellant's contention regarding the denial of benefit under Notification No. 12/2003-ST was upheld due to the failure to produce required documentary evidence. The interpretation of Mandap Keeper service and the inclusion of goods' value for service tax purposes were carefully considered, leading to the confirmation of the service tax demand. Regarding penalties under Sections 76 and 78 of the Finance Act, 1994, the Tribunal restored penalties under Section 76 for specific show cause notices and set aside penalties under Section 78, based on evolving legal interpretations, making penalties under both sections mutually exclusive from a certain date.
Union Budget 2013: Changes in Service Tax-reg. The Union Budget 2013 introduced several changes to the service tax regime aimed at providing stability and enhancing compliance. Key legislative changes include revisions to the Finance Act, 1994, such as updates to the negative list and penalties under sections 73 and 77(a). Exemptions have been adjusted, affecting educational services, copyrights, and transportation, among others. The abatement for construction services is reduced, and a Voluntary Compliance Encouragement Scheme is proposed for tax defaulters. Additionally, the Advance Ruling Authority's benefits are extended to resident public limited companies. These changes will take effect upon the enactment of the Finance Bill, 2013.
On which value threshold exemption will be available A discussion on a forum addresses the calculation of taxable value for a bar restaurant eligible for a service tax threshold exemption of Rs. 10.00 lakhs. The query involves whether to deduct Rs. 10.00 lakhs from the total Rs. 30.00 lakhs first and then apply the abatement, or to apply the abatement first and then consider the exemption. A Chartered Accountant clarifies that the exemption applies to the gross value, and tax is payable on the net taxable value after abatement. Another participant highlights the importance of considering different periods and the SSP exemption notification.
EXEMPTION TO RESTAURANT SERVICES Services related to serving food or beverages by restaurants, eating joints, or messes are exempt from Service Tax unless they have air-conditioning or central heating at any time during the year and a license to serve alcoholic beverages. The exemption does not cover high-end restaurants with such facilities and licenses, which are taxed on the service component of their offerings. Notification No. 26/2012-ST allows a 30% abatement on bundled services from July 1, 2012, provided no Cenvat Credit is availed. Rule 2C determines the taxable service value in food supply activities, setting it at 40% for restaurants and 60% for outdoor catering.
Highlights of Amendments in Service Tax (Determination of Value) Rules, 2006 The amendments to the Service Tax (Determination of Value) Rules, 2006, introduced by notification no. 24/2012, involve several key changes. Rule 2A now offers options to pay service tax on the value of services after deducting the value of goods, at a composite rate, or on specified percentages for different types of contracts. Rule 2B references were deleted due to the negative list introduction. Rule 2C prescribes composition rates for restaurant and outdoor catering activities. Amendments to Rules 3, 5, and 6 address value ascertainment and inclusion/exclusion of certain costs. Rule 7 was deleted, and concerns were raised about the omission of abatement for land-inclusive contracts.
Budget 2011 - Service Tax - New Services The 2011 budget proposes new service taxes on air-conditioned restaurants with liquor licenses and short-term accommodations. The restaurant tax targets high-end establishments where service is predominant, excluding mere food sales or deliveries. A 70% abatement is announced to separate meal and beverage sales from service charges. For accommodations, the tax applies to stays under three months with a declared tariff of Rs 1,000 or more per day, regardless of discounts. A 50% abatement is announced for this service. These measures will be implemented following the Finance Bill's enactment.
2010 (10) TMI 9 - MADHYA PRADESH HIGH COURT The High Court quashed the pre-deposit condition imposed by the Tribunal in a service tax dispute concerning banquet hall services. Emphasizing the need for consistency in judicial discretion, the Court directed the Tribunal to decide the appeal on its merits without requiring the pre-deposit amount. The judgment clarifies the interpretation of service tax notifications for banquet hall services and highlights the importance of maintaining uniformity in judicial decisions, particularly regarding waiver requests in appeals.
Valuation of Taxable Services The Service Tax Practice Manual outlines the valuation of taxable services under Section 67, revised by the Finance Act, 2006. It specifies that the taxable value is based on the gross amount charged in money unless other considerations are involved. If consideration is not fully monetary, the value includes both money and non-monetary considerations. The Service Tax (Determination of Value) Rules, 2006, guide valuation when the taxable service value is not ascertainable. Changes include a unified scheme for works contract services and a new rule for valuing food services. Expenditure incurred during service provision is included in the taxable value.
2007 (4) TMI 13 - CESTAT, MUMBAI The appeal was disposed of with directions to remand certain issues back to the adjudicating authority for reconsideration and verification of documents. The demand of Rs. 4,46,37,777/- was set aside, while the demand of Rs. 1,09,81,778/- was upheld. The penalties were to be re-determined based on the revised service tax liability.
2025 (3) TMI 967 - CESTAT NEW DELHI The Tribunal dismissed the appellant's claim for a service tax exemption under Serial No. 19 of Notification No. 25/2012-ST, which applies to establishments without air-conditioning or central heating. The appellant, operating a canteen within an air-conditioned hospital, failed to provide sufficient evidence that the canteen itself lacked air-conditioning. The Tribunal emphasized strict interpretation of exemption notifications, placing the burden of proof on the appellant. Consequently, the Tribunal upheld the Commissioner (Appeals)'s order, confirming the service tax demand and penalty against the appellant.
2023 (10) TMI 501 - CESTAT MUMBAI The Tribunal dismissed the Revenue's appeal, finding that the Show Cause Notices issued to the assessee-appellant were barred by limitation and that the services provided qualified for exemption under Notification No. 25/2012-ST. The Tribunal set aside the order imposing service tax for the period from 01.04.2012 to 30.06.2012, allowing the appeal in favor of the assessee-appellant.
2022 (4) TMI 426 - CESTAT BANGALORE The Tribunal, considering previous judgments and legal provisions, ruled in favor of the appellant, stating that they were entitled to exemption under Notification No. 12/2003-ST for goods like photography paper and chemicals used in providing photography services. The Tribunal emphasized that the value of such goods should be excluded from the gross value for service tax purposes, settling the issue in favor of the appellant. The impugned order was set aside, and the appeal was allowed, affirming the appellant's entitlement to the exemption.
2022 (1) TMI 509 - CESTAT KOLKATA The Tribunal upheld the Commissioner's decision, ruling that the Respondent correctly paid Service Tax on the service component of the contract. The Tribunal emphasized that the demand for Service Tax was invalidated due to the failure to provide the correct valuation option. The department's appeal was dismissed, affirming that the valuation mechanism allows for optional methods and deductions for the value of goods in works contracts.
2018 (6) TMI 1365 - CESTAT NEW DELHI The Tribunal allowed the appeal, ruling that the appellant, engaged in providing food services to airlines, was not liable to pay Service Tax on the cost of food supplied to airlines. The judgment emphasized that the appellant's activity constituted a sale of goods, not a service, as they were only supplying food and not serving it to passengers on board. Legal precedents and constitutional provisions were analyzed to support the decision, ultimately deeming the Service Tax demand unsustainable.
SERVICE TAX ON HOTELS AND RESTAURANTS – RECENT DELHI HIGH COURT JUDGMENT The Delhi High Court ruled on the service tax applicability concerning hotels and restaurants. Prior to July 1, 2012, short-term accommodations and air-conditioned restaurant services were subject to service tax under the Finance Act, 1994. Post-2012, a negative list regime was introduced, exempting certain services. The court upheld the validity of service tax on restaurant services but struck down the tax on short-term hotel accommodations, citing it as a luxury tax under state jurisdiction. The ruling emphasized the constitutional delineation of taxing powers between the Union and State, particularly regarding luxury and service taxes.
The introduction of the Krishi Kalyan Cess (KKC) at 0.5% on taxable services increases the effective service tax rate from 14.5% to 15% starting June 1, 2016. The KKC aims to fund agricultural and farmer welfare initiatives. It is collected alongside existing service taxes and credited to the Consolidated Fund of India. The Cenvat Credit Rules allow service providers to use Cenvat credit for KKC payments, although amendments are needed for full legal support. Various service categories under abatement and reverse charge mechanisms are affected, with detailed rate adjustments provided for specific services.
Frequently Asked Questions (FAQs) on Swachh Bharat Cess (SBC) The circular from the Central Excise Commissionerate informs the public about the Swachh Bharat Cess (SBC), introduced under the Finance Act 2015, effective from November 15, 2015. SBC is levied at 0.5% on all taxable services, raising the combined service tax rate to 14.5%. It is not applicable to exempted services or those on the negative list. The proceeds are for Swachh Bharat initiatives. SBC must be listed separately on invoices and has its own accounting code. It is not eligible for Cenvat Credit. The document provides detailed FAQs on SBC's calculation, applicability, and implementation.
SWACHH BHARAT CESS (SBC)FREQUENTLY ASKED QUESTIONS (FAQ) The Swachh Bharat Cess (SBC) was introduced as per Chapter VI of the Finance Act, 2015, effective from November 15, 2015, imposing a 0.5% levy on all taxable services. This cess is in addition to existing service taxes, raising the combined rate to 14.5%. The funds collected are allocated to Swachh Bharat initiatives. SBC is not applicable to exempted or negative list services and requires separate accounting. It cannot be integrated into the Cenvat Credit chain. The cess is calculated similarly to service tax and is applicable to services under reverse charge and abatement provisions.
SWACHH BHARAT CESS (SBC)-FREQUENTLY ASKED QUESTIONS (FAQ) The Swachh Bharat Cess (SBC), effective from November 15, 2015, is a 0.5% levy on all taxable services, raising the total service tax rate to 14.5%. This cess supports Swachh Bharat initiatives and is not applicable to exempted or negative list services. SBC is calculated similarly to service tax but is not integrated into the Cenvat Credit system, meaning credit cannot be claimed. It must be separately mentioned on invoices and paid under distinct accounting codes. The cess applies to services under reverse charge and those with abatements, with specific rules for calculation and payment.
Impact of imposition of Swachh Bharat Cess on various services: FAQs The Swachh Bharat Cess (SBC) was introduced under the Finance Act 2015 to support the Swachh Bharat initiative, effective from November 15, 2015. It imposes an additional 0.5% tax on all taxable services, raising the service tax rate to 14.5%. SBC is collected separately and does not apply to services exempted from service tax. It affects various services, including those under reverse charge and abatement. SBC is not eligible for Cenvat credit, potentially increasing the cost of goods and services. The article addresses FAQs about the implications of SBC on different service tax scenarios.
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