9911796707
Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
Try our new portal www.taxtmi.com for a better experience!
Follow us:
| TMI General Search |
|
Advanced Search Options
Showing 41 to 60 of 208 Records Search Text: abatement notification restaurant service |
| Search Results |
| Articles (35) Case-Laws (119) Circulars (22) Forum (10) Forms (1) Highlights (2) Manuals (4) News (12) Notifications (3) |
|
Is AC applies to all the 3 types of Restaurant Services & about Cenvat The discussion addresses whether air conditioning (AC) requirements apply to three types of restaurant services: indoor, outdoor catering, and bundled services. It clarifies that AC conditions apply only to indoor services within establishments like restaurants or hotels. Exemptions exist for services provided in non-AC areas, as per specific notifications. Outdoor catering and bundled services do not require AC. Regarding Cenvat credit, if abatement is availed, credit for central excise duty is not allowed. However, credit for service tax on transportation and other services can be taken if they qualify as input services under Cenvat Credit Rules, 2004.
Service Tax – Amendments through Notifications in Exemptions and Abatement Effective April 1, 2013, several changes are made to service tax exemptions. Exemptions for auxiliary educational services and renting property by educational institutes are removed. Copyright exemptions for films now apply only to cinema hall exhibitions. Non-air-conditioned restaurants no longer need an alcohol license for exemptions. Transportation exemptions are harmonized, excluding petroleum, postal, and household goods by rail or vessel, but allowing agricultural and defense items for goods transportation agencies. Exemptions for public vehicle parking and government aircraft maintenance are withdrawn. Charitable activity definitions change, reducing benefits for certain services. Construction abatement is reduced from 75% to 70% effective March 1, 2013.
2018 (6) TMI 1365 - CESTAT NEW DELHI Service or sale - sale of packed food to the airlines, on which VAT already discharged - whether the said activity amounts to Service and is liable to Service Tax or not? - Held that:- The invoice of the appellant is showing sale of food separately from the charges of other services rendered in addition to supply food. Apparently and admittedly, appellant is not serving the said food on board hence as far as supply of food is concerned property therein stands transferred the moment it is loaded ... ... ...
2024 (7) TMI 1074 - CESTAT NEW DELHI Levy of service tax - renting of immovable property - buildings (at Corbett Ramnagar Naukuchiyatal) which were renting - eligibility for abatement of 40% in terms of N/N. 26/2012 - supply of Tangible Goods service - letting out plant/machinery and fixtures to M/s.Mahindra Holidays Resorts India Ltd. - extended period of limitation - penalty u/s 77 and 78 of FA. Renting of immovable property - HELD THAT:- For the period upto June, 2012, relying on the provisions of Section 65(105)(zzzz) and the E... ... ...
2023 (10) TMI 1388 - CESTAT MUMBAI - LB Non-payment of service tax on outbound tours - tour operator service - service provided within the taxable territory or not - services relating to outbound tours provided by the appellant would be covered under the category of tour operator services under section 65(115) of the Finance Act or not - liability for the period from 10.9.2004 - HELD THAT:- The decision of the division bench of the Tribunal in M/S COX KINGS INDIA LTD., M/S TRAVEL CORPORATION OF INDIA LTD. AND M/S SWAGATAM TOURS PVT. L... ... ...
Taxability/non-taxability - business of sale of packed food and beverages on board the trains run by Indian Railways besides sale of packed food items/beverages at stalls at railway stations - In the facts of the present case, no machinery provision was also there for bifurcation of the transaction into service portion and sale portion, for levy of service tax. Rule 2C was introduced in the Service Tax Determination of Valuation Rules, 2006 with effect from 1 July, 2012 vide Notification No. 24/2012-ST, which has provided for mode of bifurcation by allowing abatement for the sale portion in the case of service of food in a restaurant or in the course of outdoor catering. Even under Rule 2C, the activity of the respondent assessee is not covered. - there is no element of service involved - AT
EXEMPTION TO RESTAURANT SERVICES Services related to serving food or beverages by restaurants, eating joints, or messes are exempt from Service Tax unless they have air-conditioning or central heating at any time during the year and a license to serve alcoholic beverages. The exemption does not cover high-end restaurants with such facilities and licenses, which are taxed on the service component of their offerings. Notification No. 26/2012-ST allows a 30% abatement on bundled services from July 1, 2012, provided no Cenvat Credit is availed. Rule 2C determines the taxable service value in food supply activities, setting it at 40% for restaurants and 60% for outdoor catering.
Swachh Bharat Cess @ 0.5% on value of all taxable services levied from November 15, 2015 The Swachh Bharat Cess (SB Cess) of 0.5% on the value of all taxable services was introduced effective November 15, 2015, to support Swachh Bharat initiatives. This levy is in addition to the existing 14% service tax, raising the total to 14.5%. The cess does not apply to services on the Negative List or those exempted under Section 93 of the Finance Act, 1994. There are unresolved issues regarding accounting, Cenvat credit, and the impact on ongoing transactions. Clarifications are needed to address these concerns and ensure smooth implementation.
HOTEL INDUSTRY – NEGATIVE LIST IS POSITIVE !!! The introduction of the "Service tax by way of Negative list" on July 1, 2012, marks a significant change in service tax law, especially for the hotel industry. This new scheme allows hotels to benefit from Cenvat Credit along with abatement on services like Mandap Keeper, restaurant, and outdoor catering. Previously, abatement was only available without Cenvat Credit. Now, these services are no longer considered exempt, reducing the proportionate reversal of credit. This change simplifies the tax process and potentially lowers costs for hotels, as they can now opt for a simpler 6% reversal method instead of the complex proportionate reversal.
Minutes of the 33rd GST Council Meeting held on 20th and 24th February 2019 The 33rd GST Council meeting, chaired by the Union Finance Minister, was held on 20th and 24th February 2019. Key discussions included the GST regime's impact on the real estate sector and the interim report on lottery by the Group of Ministers (GoM). The Council decided to reduce the GST rate on affordable housing to 1% and non-affordable housing to 5%, both without Input Tax Credit (ITC), effective from 1st April 2019. The definition of affordable housing was also revised. The GoM's recommendations on lottery were deferred for further discussion. The meeting highlighted the need for consensus and further deliberations on unresolved issues.
Clarifications on various aspects of Swachh Bharat Cess The Central Government implemented the Swachh Bharat Cess (SB Cess) at 0.5% on all taxable services starting November 15, 2015, leading to various clarifications. The SB Cess is calculated on the abated value of services, with specific rules for different service categories like works contracts and catering. It is also applicable under the Reverse Charge Mechanism. Amendments to the Service Tax Rules provide an alternate rate calculation for certain services. The SB Cess is not part of the Cenvat Credit chain, and separate accounting codes are established for its payment. The Point of Taxation Rules determine the applicability of the SB Cess based on service provision and payment timelines.
SWACHH BHARAT CESS (SBC)FREQUENTLY ASKED QUESTIONS (FAQ) The Swachh Bharat Cess (SBC) was introduced as per Chapter VI of the Finance Act, 2015, effective from November 15, 2015, imposing a 0.5% levy on all taxable services. This cess is in addition to existing service taxes, raising the combined rate to 14.5%. The funds collected are allocated to Swachh Bharat initiatives. SBC is not applicable to exempted or negative list services and requires separate accounting. It cannot be integrated into the Cenvat Credit chain. The cess is calculated similarly to service tax and is applicable to services under reverse charge and abatement provisions.
SWACHH BHARAT CESS (SBC)-FREQUENTLY ASKED QUESTIONS (FAQ) The Swachh Bharat Cess (SBC), effective from November 15, 2015, is a 0.5% levy on all taxable services, raising the total service tax rate to 14.5%. This cess supports Swachh Bharat initiatives and is not applicable to exempted or negative list services. SBC is calculated similarly to service tax but is not integrated into the Cenvat Credit system, meaning credit cannot be claimed. It must be separately mentioned on invoices and paid under distinct accounting codes. The cess applies to services under reverse charge and those with abatements, with specific rules for calculation and payment.
EXEMPTION TO RESTAURANT SERVICES The article discusses the exemption of service tax on restaurant services, specifically focusing on the conditions under which restaurants are subject to this tax. Initially, restaurants with air-conditioning or central air-heating and a license to serve alcohol were taxed. However, since April 1, 2013, only those with air-conditioning or central air-heating are taxed, regardless of alcohol licenses. Non-air-conditioned establishments remain exempt. The article also covers temporary exemptions in Uttarakhand and clarifications issued by CBEC regarding service tax applicability in various scenarios. Legal challenges in Kerala and Bombay High Courts regarding the constitutional validity of such taxes are also highlighted.
Highlights of Amendments in Service Tax (Determination of Value) Rules, 2006 The amendments to the Service Tax (Determination of Value) Rules, 2006, introduced by notification no. 24/2012, involve several key changes. Rule 2A now offers options to pay service tax on the value of services after deducting the value of goods, at a composite rate, or on specified percentages for different types of contracts. Rule 2B references were deleted due to the negative list introduction. Rule 2C prescribes composition rates for restaurant and outdoor catering activities. Amendments to Rules 3, 5, and 6 address value ascertainment and inclusion/exclusion of certain costs. Rule 7 was deleted, and concerns were raised about the omission of abatement for land-inclusive contracts.
2005 (3) TMI 766 - RAJASTHAN HIGH COURT The court held that Section 4A of the Rajasthan Sales Tax Act, 1994, and the related notification are ultra vires to the extent they impose tax on the first point sale based on the MRP. The measure of tax must be directly related to the actual sale transaction and not to a hypothetical future sale price. The petition was disposed of with no order as to costs, and the additional tax collected based on the invalid measure shall not be refunded but may be adjusted against future liabilities.
Krishi Kalyan Cess – Applicability & Open Issues The Krishi Kalyan Cess (KKC) is a 0.5% levy on the value of all taxable services, effective June 1, 2016, aimed at financing agricultural and farmer welfare initiatives. This cess increases the overall service tax rate from 14.5% to 15%. KKC is applicable under both the Reverse Charge Mechanism and Partial Reverse Charge Mechanism, but not on services exempt under the Negative List or specific notifications. Cenvat credit for KKC is available only to service providers. The article discusses the implications of KKC on ongoing transactions, clarifying its applicability, and providing guidance on tax planning under the new levy.
Budget 2012 and amendment in Service Tax The 2012 Budget introduced significant changes to India's service tax framework. The service tax rate was restored to 12%, with specific adjustments for sectors like life insurance, money changing, and works contracts. A new uniform ad-valorem levy replaced the dual tax structure for air transportation. The concept of a "Negative list" was introduced, exempting certain services from taxation. The Place of Provision of Services Rules, 2012, was proposed to replace existing export rules. Various valuation and Cenvat credit rules were revised, and a reverse charge mechanism was introduced. Penalty waivers and retrospective exemptions were also announced, alongside changes to the Point of Taxation Rules and Service Tax Rules.
2023 (12) TMI 909 - CESTAT CHENNAI Levy of Service Tax - Restaurant Service - rendering Mandap Keeper Service, Cab Operator Service and Business Auxiliary Service - Department was of the view that the respondent was liable for registration and payment of Service Tax on Restaurant Services provided in respect of food and beverages, including alcoholic beverages or both, in their premises - exemption under Notification No. 25/2012-ST dated 20.06.2012. HELD THAT:- As the restaurants though located in the premises of Hotel Sangam in ... ... ...
2023 (10) TMI 886 - CESTAT MUMBAI Levy of service tax along with interest and penalties - sale and supply of food as well as beverages in the multiplex theatre premises - declared services or not - Constitutional validity of the provision introduced under Section 66E of the Finance Act, 1994 - vires of Rule 2C of the Service Tax (Determination of Value) Rules, 2006 - extended period of limitation. HELD THAT:- A bare reading of sub sub-section (i) and (ii) of Section 65B(44)(a) would clearly indicate that transfer of goods by way... ... ...
|
