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Showing 1 to 20 of 288 Records Search Text: service tax non ac restaurants |
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EXEMPTION TO RESTAURANT SERVICES The article discusses the exemption of service tax on restaurant services, specifically focusing on the conditions under which restaurants are subject to this tax. Initially, restaurants with air-conditioning or central air-heating and a license to serve alcohol were taxed. However, since April 1, 2013, only those with air-conditioning or central air-heating are taxed, regardless of alcohol licenses. Non-air-conditioned establishments remain exempt. The article also covers temporary exemptions in Uttarakhand and clarifications issued by CBEC regarding service tax applicability in various scenarios. Legal challenges in Kerala and Bombay High Courts regarding the constitutional validity of such taxes are also highlighted.
2016 (11) TMI 545 - Supreme Court (LB) The SC held that taxes simpliciter do not infringe Part XIII of the Indian Constitution, and only discriminatory taxes are prohibited by Article 304(a). The compensatory tax theory lacks juristic basis and is rejected. Entry tax validity requires statute-specific examination under Articles 301 and 304. Clauses (a) and (b) of Article 304 are read disjunctively, and a levy violating Article 304(a) cannot be saved by Article 304(b) compliance. States can design fiscal legislation to ensure equal tax burdens on imported and locally produced goods. Discrimination under Article 304(a) refers to hostile protectionism, not mere differentiation.
Minutes of the 23rd GST Council Meeting held on 10 November 2017 The 23rd GST Council Meeting, chaired by the Union Finance Minister, was held on November 10, 2017, in Guwahati. Key discussions included confirming the minutes of the previous meeting, analyzing GST revenue for August to October 2017, and ratifying notifications and circulars issued by the Central Government. The Council deliberated on modifications to anti-profiteering rules, GST rates on various goods and services, and issues related to the GST Implementation Committee's decisions. Recommendations from the Group of Ministers on the composition and tax structure for restaurants were also considered. The Council agreed on several measures to simplify GST compliance, including extending return filing deadlines and addressing IT challenges in GST implementation.
2015 (3) TMI 748 - CESTAT NEW DELHI (LB) The Tribunal held that service elements in a composite works contract classifiable under Commercial or Industrial Construction Service (CICS), Construction of Complex Service (COCS), or Erection, Commissioning or Installation Service (ECIS) are subject to service tax even before the insertion of sub-clause (zzzza) in Section 65(105) of the Finance Act, 1994, on 01-06-2007. The Tribunal rejected the argument that works contracts were not taxable before this date, emphasizing the binding nature of the Delhi High Court's decision on the issue.
2025 (2) TMI 519 - CESTAT NEW DELHI The Appellate Tribunal dismissed the appeal by M/s Gurukripa Shahenshah Veg and Non-Veg Restaurant, upholding the Commissioner (Appeals) decision to impose service tax, interest, and penalties under the Finance Act, 1994. The Tribunal found that the appellant's restaurant service was subject to service tax due to the mandatory requirement of air conditioning for the Bar License. The appellant's inconsistent statements and lack of substantive evidence indicated an intent to evade tax. The Tribunal confirmed the extended period of limitation and penalties, aligning with previous rulings against the appellant.
2023 (8) TMI 1049 - CESTAT NEW DELHI. The Tribunal upheld the demand for service tax for the period from 01.05.2011 to 31.03.2015, along with penalties under Sections 77(1)(a), 77(2), and 78 of the Finance Act, 1994. The appeal was dismissed as the appellant failed to prove the removal of air-conditioning facilities and was found to have intentions to evade tax liability, justifying the extended period of limitation and penalties.
1963 (9) TMI 69 - CALCUTTA HIGH COURT The court dismissed the winding-up petition, finding it to be an abuse of process without merit. The petitioner's allegations of mismanagement and fraud were deemed unsubstantiated, with the court highlighting the company's financial health and the petitioner's contradictory actions as a director. The court concluded that the petition lacked just and equitable grounds, emphasizing the majority shareholder support for the company's continuation. A stay was ordered on all further proceedings related to the petition, with parties instructed to bear their own costs.
2020 (3) TMI 364 - Supreme Court The court held that despite virtual currencies (VCs) not being legal tender, they have the potential to function as a medium of exchange, unit of account, and store of value, giving RBI the power to regulate or prohibit activities involving VCs to protect the financial system. The court found RBI's decision to monitor VCs since 2013 and issue warnings was not hasty, properly exercised, and not vitiated by malice. However, the court set aside the circular due to lack of consideration of less intrusive measures and actual harm to regulated entities, emphasizing the need for proportionality in regulatory actions.
2003 (11) TMI 558 - Supreme Court The Supreme Court upheld the imposition of import fees by the States of Punjab and Kerala, ruling that these fees are part of the regulatory measures and privilege price for the license to trade in liquor. The Court found that such fees do not violate the constitutional provisions related to free trade, commerce, and intercourse among the States. The appeals filed by the State of Punjab were allowed, and the appeals against the State of Kerala were dismissed.
Clearification in Restaurant Service A query was raised regarding the applicability of service tax in a restaurant with both air-conditioned and non-air-conditioned areas, where food is prepared in a common kitchen. According to a circular, service tax is applicable only to air-conditioned areas if the restaurants are separately named. However, since both areas in question share the same name, experts advised paying service tax on both to avoid litigation. Suggestions included naming the areas differently for tax planning purposes. Another example was given of a restaurant with separate floors for AC and non-AC areas, questioning the service tax applicability for the non-AC area.
2025 (1) TMI 516 - GUJARAT HIGH COURT The court determined that the assignment of leasehold rights by a lessee to a third party constitutes a transfer of immovable property rather than a supply of service. Consequently, such transactions are not subject to Goods and Services Tax (GST) under the Central/State Goods and Service Tax Act, 2017. The court quashed the show cause notices and orders imposing GST on these transactions, allowing the petitions and making the rule absolute, confirming that the assignment of leasehold rights is outside the scope of GST.
2014 (3) TMI 1150 - ITAT MUMBAI The Tribunal ruled in favor of the assessee in various aspects, allowing deductions for recoveries from guest house expenses, fees paid to consultants, investment allowances, and contributions to institutions. Disallowances were upheld for entertainment expenses like annual general meeting costs, payments to clubs, and food at employees' gatherings. The Tribunal also allowed certain capital expenditures such as on immovable assets and partly convertible debentures. Additionally, deductions were permitted for leave salary provisions and remuneration to key personnel, while disallowances were made for certain business expenditures lacking evidence.
1957 (5) TMI 45 - COURT OF APPEAL The Court of Appeal dismissed the appeal by the National Book League, holding that the payments made under the deeds of covenant were not "annual payments" within the meaning of the Income Tax Acts. The league was not entitled to exemption from income tax as the covenantors received substantial benefits in return, negating the classification of the payments as pure income profit. The court emphasized that the benefits provided were significant, supporting the conclusion that the payments were not ordinary covenanted subscriptions to a charity.
levy of service tax on non Air Conditioned eating joint/canteen in factory. A public limited company inquires about the applicability of service tax on a non-air-conditioned canteen within its factory premises, effective from April 1, 2013. The question arises because air-conditioned venues are subject to service tax, while open-air or non-air-conditioned places are not. The company seeks clarity on whether the canteen service is exempt from service tax or if only 40% of the bill is taxable, assuming 60% covers food costs. The response clarifies that the service falls under Outdoor Catering Taxable Service rather than Restaurant Services.
E-commerce and GST-Issues and way forward The article discusses the implications of Goods and Services Tax (GST) on the rapidly growing e-commerce sector in India, highlighting recent amendments and their impact. E-commerce operators (ECOs) are now liable for GST on certain services, such as passenger transport and food delivery, which were previously exempt. These changes aim to curb tax evasion and ensure accurate revenue reporting, particularly by smaller restaurants. However, the amendments raise questions about the differentiation in taxation for services provided through ECOs and the potential impact on the market. The article suggests that these changes may conflict with constitutional rights and public interest, calling for further clarification and possible adjustments.
FREQUENTLY ASKED QUESTIONs (FAQs) FOR HOTEL AND RESTAURANT The document addresses various GST-related questions for the hotel and restaurant industry. GST is charged based on the actual transaction value, not the declared tariff, though the latter determines the tax rate slab. Different GST rates apply to accommodation and restaurant services, influenced by factors like air conditioning, liquor licenses, and declared tariffs. The document clarifies that services like room rent in hospitals are exempt, while room upgrades and additional services like extra beds incur GST based on the highest declared tariff. It also discusses the implications of GST on alcohol, input tax credits, and the reverse charge mechanism, particularly for electronic commerce operators.
Restaurant A factory is considering converting its canteen, operated by an outdoor caterer, into a non-air-conditioned restaurant to avoid paying service tax. The suggestion is to establish a rental agreement with the caterer, allowing them to prepare and serve food at menu-listed prices. Additionally, the restaurant should be accessible to the general public, not just employees, to qualify as a non-air-conditioned restaurant, which would not attract service tax.
2001 (12) TMI 857 - PUNJAB AND HARYANA HIGH COURT The court upheld the constitutionality of the Haryana Local Area Development Tax Ordinance, 2000, and the Haryana Local Area Development Tax Act, 2000. It found that the State Legislature was competent to enact the Entry Tax Act, which was not in violation of various constitutional articles. The court dismissed the writ petitions, concluding that the legislation was valid, within legislative competence, and the exemption notifications were not arbitrary or discriminatory.
2019 (9) TMI 232 - ITAT DELHI The Tribunal dismissed the grounds challenging the reassessment proceedings under Section 147 of the Income Tax Act for the years 2004-05 to 2010-11. Regarding the existence of a Permanent Establishment (PE) under the India-Korea DTAA, the Tribunal directed the Dispute Resolution Panel (DRP) to re-examine the issue. The Tribunal also instructed the DRP to reconsider the attribution of profits to the alleged PE if found to exist. The Tribunal did not address the levy of interest or the initiation of penalties, focusing primarily on the reassessment and PE issues. The appeals were set aside for the DRP to further investigate and decide accordingly.
2014 (4) TMI 1112 - ITAT MUMBAI The Tribunal's decisions in the case largely upheld disallowances of certain expenditures under the Income-tax Act, 1961, based on earlier rulings and precedents. However, the Tribunal allowed some deductions, such as contributions to specific entities and fees for feasibility studies, as business expenditures. The outcome resulted in a mix of allowances and disallowances for the assessee, with the appeals filed by the assessee partly allowed and those of the Assessing Officer dismissed.
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