Is AC applies to all the 3 types of Restaurant Services & about Cenvat

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..... Is AC applies to all the 3 types of Restaurant Services & about Cenvat
Query (Issue) Started By: - Renuka Devi Dated:- 14-9-2015 Last Reply Date:- 9-1-2016 Service Tax
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Service Tax
Is AC applies to the 3 types of Restaurant Services. (i) Indoor (ii) Outdoor Catering (iii) Bundled Service ? If yes, for case (ii) & (iii) which place should have AC being fitted, the restaurant .....

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..... Or the place of delivery of the food/beverages items? Can all the taxes paid as service tax, excise duty, sales tax, vat by the restaurant on transporter/raw food/machines/water/table/carpet/electric/repairs can be credited as Cenvat and utilise for payment of service tax? Reply By KASTURI SETHI: The Reply: The condition of AC applies to indoor service only whether in a restaurant, eating joi .....

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..... nt or a mess or hotel, convention center, club, etc. whether covered under Bundled Services or under the category of ' Service portion in Supply of Food or Other Article of Human Consumption or any drink under Section 66 E(i) which is declared service. Exemption to this service if provided in rooms other than the facility of air conditioning or central heating has been granted vide Notificatio .....

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..... n No.25/12-ST dated 20.6.12 as amended vide notification no.3/2013-ST dated 1.3.2013. which reads as under :- "19. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year;" It does not imply that exempt .....

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..... ion to outdoor catering, Mandap Keeper or Bundled Services. Practically also there is no purpose of A.C. in the open or outside the room. Hence condition of A.C. applies to indoor service only, may be in any part of the establishment. Regarding Cenvat credit of Central Excise duty , if you avail abatement, credit is not allowed as per Serial No.4 of Notification No.25/12-ST dated 20.6.12. Rega .....

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..... rding credit of Service Tax on transportation, AMC etc., credit can be taken if these are qualified as input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004.
Discussion Forum - Knowledge Sharing .....

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