Exemption to hotels providing catering services as mandap keepers - 012/01 - Service Tax

Rescinded by Notification No. 2/2006 - Service Tax dated 1/3/2006

Exemption to hotels providing catering services as mandap keepers

[Notification No. 12/2001-S.T., Dated. 20/12/2001]

[As amended by Notifications No. 2/2002 -ST, Dated. 1/3/2002; No.3/2003 -ST, Dated. 1/3/2003; NO. 08/2004-ST, Dated. 9/7/2004 and NO. 12/2004-ST, Dated. 10/09/2004 ]

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a hotel as mandap keeper in such cases where services provided include catering services, that is, supply of food along with any service in relation to use of a mandap, and the bill issued for this purpose indicates that it is inclusive of charges for catering services ²[from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to sixty per cent of the gross amount charged from the client for the said taxable service.]

¹[(***) Omitted]

³[Provided that the said exemption shall not apply in such cases where-

(i) credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004; or

(ii) such hotel providing service as mandap keeper has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003].]

Explanation.- For the purposes of this notification,

(i) the expression "food" means a substantial and satisfying meal;

(ii) the expression "hotel" means a place that provides boarding and lodging facilities to public on commercial basis.

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Note :

1. Has been Omitted vide Notification No. 3/2003 dated 1/3/2003, Earlier it was read as,

"2. This notification shall have effect upto and inclusive of ¹31^st day of March 2003", before the figures and words "31st day of March 2002", the figures and words "31st day of March 2003" has been substituted vide Notification No. 2/2002 dated 1/3/2002

2. For the words "from the whole of the service tax leviable thereon under section 66 of the said Act", the words "from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to sixty per cent. of the gross amount charged from the client for the said taxable service" has been substituted vide Notification No. 8/2004 dated 9/7/2004

3. Has been inserted vide Notification No. 12/2004 dated 10/9/2004