Abatement - Bundled service by way of supply of food etc together with renting of premises - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 4 Bundled service by way of supply of food etc together with renting of premises w.e.f. 1.7.2012 Scope of abated service - Notification no 26/2012-ST dated 20.6.2012 From 1.7.2012 4. Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises. Effective Rate of tax : 70% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. Definitions and meanings: 65B (41) renting means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property; Explanation: as appended to the Notification For the purposes of exemption at Serial number 4 - The amount charged shall be the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any drink (whether or not intoxicating) and whether or not supplied under the same contract or any other contract, after deducting- (i) the amount charged for such goods or services supplied to the service provider, if any; and (ii) the value added tax or sales tax, if any, levied thereon: Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.