Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

No Service tax on free Pick-up/Home delivery of food being Sale in nature Chandigarh Commissionerate

Service Tax - By: - Bimal jain - Dated:- 26-8-2015 Last Replied Date:- 3-5-2016 - Dear Professional Colleagues, No Service tax on free Pick-up/Home delivery of food, being Sale in nature - Chandigarh Commissionerate Background: The Government vide Entry No. 19 of the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 ( the Mega Exemption Notification ) granted exemption from payment of Service tax to Restaurants, eating joint or a mess providing service in relation to food or beverag .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is levied even on the Restaurants which do not have a license to serve alcoholic beverages. This was a major change for the Industry as thousands of Restaurants and eating joints including small and medium came within the ambit of Service tax by such amendment. However, questions were raised whether Take-away or Home delivery of food from Restaurants, such as McDonald s, Domino s, Pizza Hut etc., would also attract Service tax, as most of these have air-conditioned dining space and some of these .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tter C.No. ST-20/STD/Misc./Sevottam/62/12/4693 dated August 13, 2015 ( the Clarification ) has clarified that free Home delivery/ Pick-up of food is not liable to Service tax. The Department explained the matter further by stating that the dominant intention of such transaction is that of Sale as food is not served at Restaurant and no other element of service such as ambience, live entertainment (if any), air conditioning or personalised hospitality is offered. It is further stated that Service .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, irrespective of the jurisdiction of particular Department. To view the compete Clarification, please click on the link below: http://www.a2ztaxcorp.com/wp-content/uploads/2015/08/notification-by-comissionerat.jpg Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Mr. Jain,Non levy of Service Tax on Home Delivery of food is exempt since the inception .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e Budget Letter (http://indiabudget.nic.in/ub2011-12/cen/dojstru2.pdf) as extracted below:1.6 The levy is intended to be confined to the value of services contained in the composite contract and shall not cover either the meal portion in the composite contract or mere sale of food by way of pick-up or home delivery, as also goods sold at MRP.CBEC intention is very clear i.e. not to include the meal portion by way of pick up or Home Delivery.Clarification given by Chandigarh Excise & Service .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version