Restaurant Service (Indoor/Outdoor Catering/Bundled Service)

[Renuka Devi]

Please someone clarify.....

(1) In Restaurant Service of Indoor/Outdoor/Bundled, What are Cenvat Credit of Input Goods/Input Capitals/Input Services permissible & non permissible for availment (payment of service tax)?

(2) Is the criteria of AC applies to Outdoor Catering? If so, which place should be AC, the place of Cater Provider should have fitted AC OR the place of delivery/Receiver of the cater items should be AC fitted?

(3) In Bundled Service, the same query goes - the service provider inn should be AC or the service receiver rented shamiana tent should be AC?

[KASTURI SETHI]

Restaurant service (Air-conditioned/Non-air conditioned) - Clarifications

Circular No. 173/8/2013-S.T., dated 7-10-2013

F.No. 334/3/2013-TRU

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

Subject : Restaurant Service - Clarification - Regarding.

AI Summary

Restaurant service classification: CENVAT credit and air conditioning criteria determine tax treatment for indoor, outdoor and bundled services. Clarification addresses CENVAT credit eligibility for input goods, capital goods and input services in indoor, outdoor and bundled restaurant services, and whether the air conditioning criterion for tax classification applies to outdoor catering or bundled services by examining whether AC must be at the provider's premises or at the place where services are supplied, with guidance found in Circular No. 173/8/2013.