Specified Value - Restaurant or as outdoor catering services - Service Tax Practice Manual / Ready Reckoner - Service Tax

RULE 2C Determination of value of service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering. Rule 2C of the Service Tax (Determination of Value) Rules, 2006 Value of taxable service i.e., service portion in a contract in relation to restaurant service will be determined as per rule 2C and then service tax @14% will be paid on such service portioned amount as follows: Sl.no. Description Percentage of total amount 1. Service portion in an activity where goods etc., is supplied as a part of activity, at a restaurant 40% 2 Service portion in outdoor catering wherein goods, drink (any) , is supplied as a part of such outdoor catering 60% For the purposes of this rule, total amount means 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), whether or not supplied under the same contract or any other contract, after deducting- ( i ) the amount charged for such goods or services, 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. Restriction on Cenvat Credit:- Provider of taxable service shall not take CENVAT credit of duties or cess paid on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) . ]