Service Tax on Restaurant & Hotels Services
-
Wednesday, May 18, 2011
1 Comment
In the Budget 2011, it was proposed to levy Service Tax on Hotels & restaurants. Vide Notification 29/2011 dated 25.04.2011, 1st May of 2011 has been declared as the appointed day on which these provisions will come into effect. Thus these services are taxable with effect from 01.05.2011.
Restaurant Service:
Restaurant Service has been defined in clause (zzzzv) of Section 65(105) which reads as,
“(zzzzv) to any person, by a restaurant, by whatever name called, having facility of air-conditioning in any part of the establishment, at any time during the financial year, which have license to serve alcoholic beverages, in relation to serving of food or beverages, including alcoholic beverages or both, in its premises.”
