Please Help: service tax on hotels
Posted Date : 08-May-2012 , 05:05:09 pm | Posted By: Sourabh Mehra
Category :
Service Tax | Answers :
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Comments :
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A restuarant is charging from its customers on account of breakage of glasses and plates say amount Rs.5000
i want to know that whether restaurant is required to pay service tax on this amount
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this amount is chargeable under Vat? |
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Answers:
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 Answer by: Rishabh Upadhyay |
| Such case in my opinion does not fall under the category of sale or services, Also the restaurant must not be raising saidle bill for the food as well as the breakage. The receipts of such nature will go to head misc income and nor service tax neither sales tax will be applicable
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| Answer by: Rishabh Upadhyay |
| Kindly read "Single" in place of "saidle",, thanks
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| Answer by: Ashish Chaudhary |
| Service tax is chargeable under restaurant when service is provided "in relation to serving of food or beverage". In the instant case, consideration received is not towards any service. In our view, it may not be liable to service tax. As regards to VAT, as there is no sale, there is no liability to pay VAT.
It may be liable to service tax once Negative list based service tax is implemented.
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