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: cpt :: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT Audit :: empanelment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TDS
Customs and Excise »
 Central Board of Excise and Customs to soon notify new procedural framework
 CBEC set to be Central Board of Indirect Taxes and Customs
 Govt to give customs, excise duty benefits to boost solar rooftop sector
 Clarification regarding posting of Central Excise officer in Cigarette units-reg.
 Ensure transparency in excise department working: Bizmen to government
 It is time to review the customs duty on essential food imports
 Migration to GST of existing Central Excise / Service Tax Assessees
 Rate of exchange of conversion of the foreign currency with effect from 3rd February, 2017
 Budgetary Changes In Customs
 Customs and excise officials upset with GST administration deal with states
 Higher petro excise props up govt tax kitty

CBEC issues circular clarification on service tax for restaurant services
May, 12th 2011

The Central Board of Excise & Customs has issued a circular giving clarification on the host of queries it has been receiving after the levy of service tax on the two new services, relating to specified restaurants and short-term hotel accommodation, which came into force with effect from May 1, 2011.

In this regard, it said that service tax was leviable on the service provided by a restaurant which had the facility of air conditioning in any part of the establishment and had the license to serve alcoholic beverages.

However, it made clear that when food was served in the hotel room, service tax could not be charged under the restaurant service as the service was not provided in the premises of the air-conditioned restaurant with a licence to serve liquor.

Also, the same could not be charged under the Short Term Accommodation head if the bill for the food was raised separately and it did not form part of the declared tariff.

This clause would certainly be hailed by corporates and travelers who were earlier wary of the increased tax burden announced in the Union Budget this year.

However the taxable services provided by a restaurant in other parts of the hotel, for example, swimming pool, or an open area attached to the restaurant were also liable to service tax as these areas became extensions of the restaurant.

The circular further informed that the state Value Added Tax (VAT) would be excluded from the taxables value.

Within the same entity, if there were more than one restaurant, which were clearly demarcated and separately named, the ones which satisfied both the criteria would only be liable to service tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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