Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: form 3cd :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Service Tax »
 CBEC to be renamed, reorganised for GST regime
  GST debate now continues on categorisation of products
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks
 FM Arun Jaitley underlines urgency to pass GST bills in this Parliament session
 Government may table 4 GST bills in Parliament today
 Applicability Of Gst Law On Educational Institutions
 Cabinet clears 4 Bills, GST likely to roll out by July 1
 GST may also impact income tax collections: Experts
 Companies, consultants grope in the dark to meet GST deadline
 Cabinet approves GST, e-commerce cos to pay up to 1% tax
 Cabinet approves supporting GST legislations ahead of 1 July roll-out

Service tax to make eatingout in AC restaurants costlier
March, 02nd 2013

The foodies in the city should get prepared for shelling out more as city-based hoteliers and restaurateurs are all set to pass on the burden of service tax on customers. The Union budget has proposed to levy a service tax of 12% on all AC restaurants over and above the applicable VAT.

At present, the service tax was levied only on restaurants and hotels serving liquor. However, this new budgetary announcement brings every big and small restaurant having ACs under its ambit.

"This is something bizarre. Are the restaurants now expected to remove ACs, which are no more a luxury but a necessity?," said Tarun Ashok, manager of a restaurant, 17 Degrees, situated at P&M Mall.

Restaurant manager of Raj Rasoi, Bhaskar Raj said, "Profits have already gone down due to inflation in the past few months. Moreover, the entry of new players has affected our business. The extra burden has to be passed on to consumers." He lamented, "The hospitality industry is seen to cater to the rich, which is not always the case. One yardstick cannot be applied to all."

Angeethi's restaurant manager Amarendra Jha felt the hospitality and tourism industry would be badly hit. "We fear 40% of our profits will be hit. Hence, we demand that the tax be rolled back." Experts in hotel industry say the number of middle class people visiting hotels and restaurants would dwindle sharply. These people may now turn to roadside food joints

However, there are a few others who are confident about their customers. "One can't escape the fact that treating taste buds at high-end restaurants is a luxury, which gradually turns into a habit. So no matter how much the price increases, I think my customers won't stop coming if I give them good service," said Ming's Chimney's Rohit Raj.

However, the new announcement has left many customers apprehensive. "Many customers are asking us if we will add any extra service tax. Customers don't seem to know that the restaurants having license of bars already pay that tax and hence we are not going to levy any new tax," said Pind Baluchi's general manager Amar Kumar.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions