Modification of Exemption Scheme with respect to restaurants.

Notification No. 25/2012-ST dated June 20, 2012 as amended by Notification no. 3/2013 dated 1.3.2013

Exemption under S. No 19 will now be available only to non air-conditioned (non-centrally air-heated) restaurants.

The dual requirement earlier that it should also have a license to serve alcohol is being done away with;

Therefore, with effect from 1st April, 2013, service tax will be leviable on taxable service provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year.

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Valuation of taxable in case of restaurant services has been provided in Rule 2C