Service Tax Payble

[MUNIRAJ SRINIVASAN]

 we are selling all products through our cafe and paying service tax on 40% of the bill value.We propose to start home delivery from our cafes at the same price.Please confirm whether service tax is applicable on home delivery sales and if yes how to calculate the same.

[YAGAY andSUN]

VAT and Service Tax, Both will be leviable.  The rate of tax would be depended on the goods and nature of services.

AI Summary

Service tax on home delivery: delivery may attract service tax while VAT covers sale of goods depending on classification. VAT and service tax are both potentially leviable on home delivery of cafe sales: VAT covers the sale of goods while service tax may apply to the delivery or related service component. The applicable rates and tax treatment depend on the nature of the goods and the characterization of the service element, requiring allocation of value between goods and services under relevant valuation rules.