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Showing 101 to 120 of 208 Records Search Text: restaurant service abatement notification |
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| Articles (35) Case-Laws (119) Circulars (22) Forum (10) Forms (1) Highlights (2) Manuals (4) News (12) Notifications (3) |
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2022 (1) TMI 509 - CESTAT KOLKATA Valuation - works contract service - whether the valuation mechanism as per Rule 2A of the Service tax (Determination of Value) Rules, 2006 provides for optional methods or not? - HELD THAT:- It is seen that the contract provides for separate values for supply of materials and there being transfer of property in goods from the Respondent to the intended beneficiary, the same cannot form part of value for the purposes of Works Contract Service and since the value is clearly determinable in the in... ... ...
The introduction of the Krishi Kalyan Cess (KKC) at 0.5% on taxable services increases the effective service tax rate from 14.5% to 15% starting June 1, 2016. The KKC aims to fund agricultural and farmer welfare initiatives. It is collected alongside existing service taxes and credited to the Consolidated Fund of India. The Cenvat Credit Rules allow service providers to use Cenvat credit for KKC payments, although amendments are needed for full legal support. Various service categories under abatement and reverse charge mechanisms are affected, with detailed rate adjustments provided for specific services.
Frequently Asked Questions (FAQs) on Swachh Bharat Cess (SBC) The circular from the Central Excise Commissionerate informs the public about the Swachh Bharat Cess (SBC), introduced under the Finance Act 2015, effective from November 15, 2015. SBC is levied at 0.5% on all taxable services, raising the combined service tax rate to 14.5%. It is not applicable to exempted services or those on the negative list. The proceeds are for Swachh Bharat initiatives. SBC must be listed separately on invoices and has its own accounting code. It is not eligible for Cenvat Credit. The document provides detailed FAQs on SBC's calculation, applicability, and implementation.
Impact of imposition of Swachh Bharat Cess on various services: FAQs The Swachh Bharat Cess (SBC) was introduced under the Finance Act 2015 to support the Swachh Bharat initiative, effective from November 15, 2015. It imposes an additional 0.5% tax on all taxable services, raising the service tax rate to 14.5%. SBC is collected separately and does not apply to services exempted from service tax. It affects various services, including those under reverse charge and abatement. SBC is not eligible for Cenvat credit, potentially increasing the cost of goods and services. The article addresses FAQs about the implications of SBC on different service tax scenarios.
TAX ABATEMENT IN SERVICE TAX - Part – I The article discusses the concept of tax abatement in service tax, explaining that abatement involves a reduction or moderation of taxes. It emphasizes the necessity for assessees to comply with specific conditions to avail abatement benefits, differentiating abatements from exemptions. Judicial pronouncements highlight that exemption notifications must be strictly interpreted, and any ambiguity should favor the state. The article details Notification No. 26/2012-ST, listing services eligible for abatement and associated conditions, such as restrictions on claiming CENVAT credit. It also outlines abatements available before July 1, 2012, under a prior notification, noting conditions where abatements were not permitted.
Service Portion in Supply of Foods & Drinks The article discusses the service tax implications on the supply of food and drinks, emphasizing the distinction between goods and services in such transactions under Indian law. According to Article 366(29A) of the Indian Constitution, the supply of food and drinks is deemed a sale, not a service, to the extent of the goods' value. The remaining portion is considered a service. Restaurants with air-conditioning or liquor licenses are subject to service tax, while others are exempt. The value of the service portion is determined by specific rules, and certain exemptions and abatements apply, including for educational institutions and non-air-conditioned restaurants.
2012 (6) TMI 792 - GAUHATI HIGH COURT The court dismissed the petition seeking to quash specific sections of the Finance Act and a show cause notice. It upheld the legislative competence of Parliament to levy service tax on erection, commissioning, and installation services, ruling that the provisions in question did not encroach on State legislation. The court deferred detailed consideration to the adjudicating authority and granted the petitioner the option to pursue legal remedies if dissatisfied.
Budget 2011 - Service Tax - New Services The 2011 budget proposes new service taxes on air-conditioned restaurants with liquor licenses and short-term accommodations. The restaurant tax targets high-end establishments where service is predominant, excluding mere food sales or deliveries. A 70% abatement is announced to separate meal and beverage sales from service charges. For accommodations, the tax applies to stays under three months with a declared tariff of Rs 1,000 or more per day, regardless of discounts. A 50% abatement is announced for this service. These measures will be implemented following the Finance Bill's enactment.
Issues pertaining to Service Tax - regarding the Finance Bill,2004 The Finance Bill 2004 introduced new services under the service tax levy, including business exhibition, airport, and intellectual property services, among others. The service tax rate was set at 10%, with an additional 2% education cess. The circular clarified the scope of these services and outlined abatement and exemption details for specific services like outdoor catering and pandal services. It also expanded existing taxable services such as business auxiliary services and financial services. The circular emphasized avoiding double taxation and provided guidelines for implementing these changes smoothly, ensuring compliance and understanding among service providers.
Issues pertaining to Service Tax – regarding the Finance Bill, 2004 The Finance Bill, 2004, introduced new services under the service tax levy, including business exhibition, airport services, and intellectual property services, among others. It expanded existing taxable services to include additional activities and entities, such as sub-brokers and multi-system operators. The service tax rate was set at 10%, with an education cess of 2%. Specific exemptions and abatements were detailed for services like outdoor catering and construction. The circular also clarified the scope of various services and the applicability of service tax, aiming to ensure smooth implementation and avoid double taxation.
Service Tax — Budget changes for 2004-05 effective from 10th Sept., 2004 The Finance (No. 2) Bill, 2004, effective from September 10, 2004, introduced several changes to the service tax regime. New services under the tax include business exhibition, airport, and construction services, among others. Existing services like financial and business auxiliary services saw expanded definitions. The service tax rate is set at 10%, with an additional 2% education cess. Certain exemptions and abatements are provided for services like outdoor catering and pandal/shamiana services. The circular also clarifies tax applicability on services like intellectual property, opinion polls, and construction, while detailing procedural aspects for compliance and credit utilization.
Imposition of service tax on services rendered by Mandap keeper and by an Air Travel Agents reg. The circular announces the imposition of service tax on services provided by Mandap keepers and Air Travel Agents effective from July 1, 1997, as per the Finance Act, 1997. Mandap keepers, defined broadly to include venues like marriage halls and hotels, are responsible for collecting tax on all charges, including rentals and additional services. An abatement of 40% is allowed for catering services. Air Travel Agents must collect tax based on commissions from airlines, with an option to pay a percentage of the basic fare instead. Registration, tax payment, and penalties for non-compliance are outlined, emphasizing timely tax collection and submission of returns.
2025 (5) TMI 1530 - CESTAT ALLAHABAD Tribunal case involving service tax on construction services addressed multiple issues: (1) Preferential Location Charges (PLC) and club construction costs were deemed part of bundled construction service eligible for abatement, not separate taxable services. (2) Revenue's allegations of clandestine cash receipts were rejected due to lack of substantive evidence. (3) The Tribunal emphasized that burden of proof lies with Revenue to establish taxability, setting aside demands based on unsubstantiated claims. Appeals were allowed with consequential relief.
2024 (10) TMI 626 - CESTAT ALLAHABAD Demand of Service Tax made on the basis of tally data resumed by the department - cogent reasons have been provided for doubting the authenticity of the records or not - principles of natural justice - HELD THAT:- It appears that the appeal have been filed only by referring to the order in original and for the reason that the appellate authority has set aside the same. No specific reason has been stated as to why the findings recorded by the appellate authority are not tenable, except to effect ... ... ...
2022 (3) TMI 329 - CESTAT AHMEDABAD Nature of activity - sale or service - packed food which is sold as take away either on the counter of the restaurant or through delivery boys to the customer s place, and not served in the restaurant - HELD THAT:- The appellant have been discharging the service tax in respect of food served in the restaurant to their customers. However, they are not paying service tax in respect of packed food which is sold as take away either on the counter of the restaurant or through delivery boys to the cus... ... ...
ISSUES IN TAXATION OF JOINT DEVELOPMENT AGREEMENT (JDA) TRANSACTIONS-UNDER GST & INCOME TAX The article examines the taxation challenges associated with Joint Development Agreements (JDAs) under GST and Income Tax laws. JDAs, involving landowners and developers, face scrutiny from tax authorities due to disputes over taxability. Key GST issues include whether Transfer of Development Rights (TDR) are taxable, the applicability of GST to JDAs before 2018, and valuation methods for land and construction services. The article argues that current GST provisions may indirectly tax land, which is exempt. Under Income Tax, section 45(5A) raises questions about capital gains timing and applicability, particularly for individual and HUF assessees. The author suggests careful legal interpretation and planning to navigate these complex issues.
2019 (6) TMI 1596 - CESTAT MUMBAI CENVAT Credit - input services - providing of Construction Services other than Residential Complex including Commercial/ Industrial Building or Civil Structures - entitlement to abatement as provided by Notification No 1/2006-ST - HELD THAT:- The measure amounts received by the appellants i.e. Rs. 4,98,92,896/- was against the services provided by the Appellant under the category of Commercial and Industrial Construction services was in respect of the services provided by the Appellant to TNEB, ... ... ...
SERVICE TAX ON HOTELS AND RESTAURANTS – RECENT DELHI HIGH COURT JUDGMENT The Delhi High Court ruled on the service tax applicability concerning hotels and restaurants. Prior to July 1, 2012, short-term accommodations and air-conditioned restaurant services were subject to service tax under the Finance Act, 1994. Post-2012, a negative list regime was introduced, exempting certain services. The court upheld the validity of service tax on restaurant services but struck down the tax on short-term hotel accommodations, citing it as a luxury tax under state jurisdiction. The ruling emphasized the constitutional delineation of taxing powers between the Union and State, particularly regarding luxury and service taxes.
Effective Rates of Service tax after Swachh Bharat Cess The article outlines the historical rates of service tax in India from 1994 to 2015, highlighting changes in rates and the introduction of various cesses, including the Swachh Bharat Cess. It details the service tax rates applicable to different services, such as air travel booking, life insurance, currency exchange, and lottery distribution, along with their respective compound rates after abatement. The Swachh Bharat Cess, introduced on November 15, 2015, is calculated as 0.5% of the service tax liability. The document serves as a reference for understanding the evolution of service tax rates and their application to specific services.
Diwali Bonus “Swachh Bharat Cess” The Finance Act, 2015 introduced the Swachh Bharat Cess (SBC) to fund cleanliness initiatives, effective from November 15, 2015. Initially set at 2% on taxable services, it was revised to 0.5% with a 1.5% exemption. SBC applies to all taxable services, excluding those exempt under specific notifications or not subject to service tax under section 66B. CENVAT credit is not available for SBC. The Point of Taxation Rules, 2011, govern its collection. SBC affects various services, including transport, hospitality, and construction, with specific rates. Notifications for accounting codes and foreign currency exchange are anticipated.
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