Service tax on restaurant services: gross value exemption and valuation rules; hotel tariff based levy with exemptions. The circular operationalises new and amended Service Tax entries effective May 1, 2011, setting valuation and exemption rules: restaurants receive a 70% gross value exemption only if no Cenvat credit is claimed and service charges are included in taxable gross value while tips are excluded; short term accommodation is taxed based on a declared tariff definition with exemptions below the threshold and a 50% valuation concession absent Cenvat credit; life insurance taxation allows an option to tax the non investment premium portion or apply a prescribed valuation where no break up is provided.
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.
Provisions expressly mentioned in the judgment/order text.
Service tax on restaurant services: gross value exemption and valuation rules; hotel tariff based levy with exemptions.
The circular operationalises new and amended Service Tax entries effective May 1, 2011, setting valuation and exemption rules: restaurants receive a 70% gross value exemption only if no Cenvat credit is claimed and service charges are included in taxable gross value while tips are excluded; short term accommodation is taxed based on a declared tariff definition with exemptions below the threshold and a 50% valuation concession absent Cenvat credit; life insurance taxation allows an option to tax the non investment premium portion or apply a prescribed valuation where no break up is provided.
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