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Taxes: What is service tax for non ac hotels and restaurant?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked about 3 years ago

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Air conditioned hotels and restaurants attract a service tax on 40 per cent of the billed amount , therefore 14 per cent service tax on food/beverage in air conditioned hotels and restaurants calculated on 40 per cent of bill amount will make Effective service tax rate to be 5.6 per cent

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

For the service provided by restaurant for the supply of food/drink, service tax is liable only if it is air conditioned. Therefore no service tax is applicable for non AC hotels & restaurants. visit [CAKART provides the best video Lecture and Online classes, coaching for Chartered Accountant CA FINAL, CA Intermediate | CA IPCC, CA Foundation | CA CPT Exams; Company Secretary CS FINAL] to avail discount use my ambassador code :CAKARTAMB1671782 for more article visit https://www.cakart.in/blog http://cakart.in

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Open uri20170510 32134 ng4pv?1494421709 SONIYA answered almost 3 years ago

The finance ministry has clarified that no Service tax will be levied on customers dining in restaurants without air conditioning facility or central heating. Air conditioned hotels and restaurants attract a service tax on 40 per cent of the billed amount , therefore 14 per cent service tax on food/beverage in air conditioned hotels and restaurants calculated on 40 per cent of bill amount will make Effective service tax rate to be 5.6 per cent **SERVICE TAX NOT APPLICABLE FOR NON - AC HOTELS & RESTAURANT.**

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CHITRANJAN AGARWAL answered about 3 years ago

Dear Kruthika, As per many clearification given by the ministry Service tax is not applicable on such restaurant eatries etc who's have no AC facility in the premises however vat as per the state policy on product sold is applicable accordingly. so in nut sell Service tax is not applicable on non ac hotel and restaurant. VAT as per the state vat act may be applicable of some product. Any other query feel free to contact us. Writer CA Chitranjan Agarwal

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