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RESTAURANT SERVICE




      CA. MANISH MALHOTRA, +91-
      9717560005, camanishmalhotra@gmail.com
 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
 BECAUSE OF CHANGE IN MEGA EXEMPTION
 NOTIFICATION NO. 25/2012 dated 20.06.2012
 vide notification number

     3/2013 dated 01.03.2013




                               Worrying ?
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.
 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.
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
   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)
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

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Budget 2013-impact

  • 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