Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess having facility of •Air conditioning •Central air heating in any part of the establishment, at any time during the year from 1st day of April 2013 is now covered under service tax provisions.

1. RESTAURANT SERVICE
CA. MANISH MALHOTRA, +91-
9717560005, camanishmalhotra@gmail.com

2.  Be Aware if you provide service in relation to-
“serving of food or beverages by a restaurant, eating joint
or a mess”
HAVING
the facility of air-conditioning or central
air-heating in any part of the
establishment, at any time during the year

3.  BECAUSE OF CHANGE IN MEGA EXEMPTION
NOTIFICATION NO. 25/2012 dated 20.06.2012
vide notification number
3/2013 dated 01.03.2013
Worrying ?

4. Relevant points for you:-
 Before notification this services was taxable only for those
have following essential:-
1. Restaurant /eating joint/mess having facility of air-
conditioning or central air-heating in any part of the
establishment, at any time during the year, and
2. Having licence to serve alcoholic beverages.

5.  Services provided in relation to serving of food or
beverages by a restaurant, eating joint or a mess, other
than those having the facility of air-conditioning or
central air-heating in any part of the establishment, at
any time during the year.
Notification no. 3/2013
The notification will be applicable w.e.f 1st April 2013.
NOW ALL RESTAURANT/EATING JOINT OR MESS WHO COVER
ABOVE ARE LIABLE TO SERVICE TAX PROVISIONS. Whether or
not they serve alcoholic beverages.

6. Amount
 Restaurant Bill 2,000
 Service Charge 200
Total 2,200
VAT @ 12.50 % on Rs. 2000 250
Total before service tax 2,450
Service Tax@4.94% (i.e 40% of 12.36%) on RS.
2200(as per Rule 2C of the Valuation Rules) 108.68
TOTAL BILL 2558.68
=====
Note Effective service tax rate will be 7.42% if
outdoor catering

7.  Apply for registration A person liable to pay service tax
should file an application for registration within thirty
days from the date on which the service tax on
particular taxable service comes into effect or within
thirty days from the commencement of his activity
 When to start new billing?
You can Start billing in new format w.e.f 1/04/2013
subject to having valid registration certificate(ST-2)

8. CA. Manish Malhotra
(B.com, ACMA, ACA)
(Partner)
MTM & CO, Chartered Accountants
Contact +91-9717560005
E-mail camanishmalhotra@gmail.com
manish@caconsultancy.org
Web www.caconsultancy.org
Suggestions/feedback are also invited