Rule 2C - Determination of value of service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering
Service Tax (Determination of Value) Rules, 2006
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Service portion valuation in food supply allocates taxable service value and limits input credit applicability. The rule prescribes a fixed proportion of the total amount charged for supplies of food or drink at restaurants and in outdoor catering to be treated as ... Summary
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Service portion valuation in food supply allocates taxable service value and limits input credit applicability.
The rule prescribes a fixed proportion of the total amount charged for supplies of food or drink at restaurants and in outdoor catering to be treated as the service portion for valuation. "Total amount" equals the gross charged amount plus fair market value of all related goods and services (whether under the same contract or not), minus amounts separately charged for those goods/services and any VAT or sales tax thereon; fair market value may follow generally accepted accounting principles. CENVAT credit is disallowed on duties/cess for goods under Chapters 1-22.
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