RESTAURANT SERVICE, Service Tax

[vishal sharma]

Hello All,

I am a member of a club, having provision for restaurant service as follows :

(1)   AC restaurant, only food served, liquor not served.

(2)   Open air restaurant adjacent to (1), only food served, liquor not served.

(3)   AC restaurant, food and liquor both served.

(4)   Open air roof top restaurant on top of restaurant mentioned in (3), food and liquor both served.

(5)   AC Hall which are given to members on booking  for rent. And based on his requirement, food and liquor is served.

(6)   Open Air Terrace on top of AC Hall mentioned in (5) , which are given to members on booking for rent. And based on his requirement, food and liquor is served.

The club have single excise registration for serving of liquor, with area earmarked therein.

I would like to seek confirmation on my view as follows :

(a)    Restaurants mentioned in (1), (2) and (4) should be out of service tax net, as it fails to satisfy both the conditions i.e. Airconditioning and Bar

(b)   AC Hall and Open Air Terrace as mentioned in (5) and (6) should also be out of service tax net, as it is not a restaurant, but given to members for private purpose.

(c)    Only AC restaurant mentioned in (3) should attract service tax.

Looking forward for your valuable comments

Thanks

Vishal Sharma

Posts / Replies

[Surender Gupta]

I t hink, your queries are vary extent have been addressed by the board in its circular dated 10-5-2011. Kindly visit that circular and if you have still any query unaswered, please mention here.

[R.S. Mangal]

(1)   AC restaurant, only food served, liquor not served.

Answer-  No Service Tax

(2)   Open air restaurant adjacent to (1), only food served, liquor not served.

Answer-  No Service Tax

 

(3)   AC restaurant, food and liquor both served.

Answer-   Service Tax is payable assuming that restaurant have license to serve alcholic.

 

(4)   Open air roof top restaurant on top of restaurant mentioned in (3), food and liquor both served.

Answer-   Service Tax is payable as it can be said as extension of 3 above.

 

(5)   AC Hall which are given to members on booking  for rent. And based on his requirement, food and liquor is served.

Answer- It may not be taxable under Restaurant Services, however taxing in other head of taxable service can not ruled out.

(6)   Open Air Terrace on top of AC Hall mentioned in (5) , which are given to members on booking for rent. And based on his requirement, food and liquor is served.

Answer- It may not be taxable under Restaurant Services, however taxing in other head of taxable service can not ruled out.

 

The club have single excise registration for serving of liquor, with area earmarked therein.

I would like to seek confirmation on my view as follows :

(a)    Restaurants mentioned in (1), (2) and (4) should be out of service tax net, as it fails to satisfy both the conditions i.e. Airconditioning and Bar

(b)   AC Hall and Open Air Terrace as mentioned in (5) and (6) should also be out of service tax net, as it is not a restaurant, but given to members for private purpose.

(c)    Only AC restaurant mentioned in (3) should attract service tax.