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: ACCOUNTING STANDARDS :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: list of goods taxed at 4% :: due date for vat payment :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India
 
 
Service Tax »
 India to levy service tax on freight for imports on delivered basis
 Income tax relief must be blended with additional tax measures
 9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017
 GST rollout uncertainty hits Budget 2017 calculations
 GST now set for July 1 roll-out, dual control hurdle finally over
 Grant of Registration under DVAT and CST
 Do not raise service tax, says Chamber
 Excise, service taxpayers to migrate to GST portal by Jan 31
 Centre, state governments work on formula for 'GST on high seas'
 What is service tax?
 Tax to bring transparency, benefit companies operating in state, says Gujarat CM Vijay Rupani

Service tax on online order for eatables is illegal
September, 16th 2014

Service tax is supposed to be levied when someone uses the services while eating or drinking in a restaurant or hotel.

But what if you order eatables online? Do you still have to pay the service tax?

No, say tax experts, but most of the companies charge 4.94% service tax every time you order food or beverages online -- in violation of the rules.

According to tax lawyer Ajay Jagga, who has written to finance minister Arun Jaitley in this regard, the ministry of finance in 2012 had amended the Service Tax (Determination of Value) Rules, 2006, making charging of service tax where no service is involved unlawful.

"As per rules, the service tax should be imposed if there is a service like furniture, cutlery, among others, involved in a restaurant or hotel. But when you order something to eat or drink online, no service is involved and so charging service tax becomes completely illegal," said Jagga.

In his letter, Jagga has requested the FM to order chief commissioners and commissioners of service tax to issue public notices clarifying the rules in the larger public interest and for consumer protection.

"The Union government has although clarified the whole issue, but people are still being charged 4.94% as service tax for ordering food and beverages online," said Jagga.

He has further written to the FM that "the charging of service tax on online orders for home delivery or pick up of foods/beverages must be stopped at once and strict guidelines in this regard should be issued to online retailers."

Jagga had added in the letter that "the already sky-high inflation demands immediate stopping of the charging and collecting of service tax on online purchases of foods and beverages."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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