Abatement entry no in case of Restaurent food

[VAMSI KRISHNA]

Sir,

Let me know relevent notification entry no for to claim 60% of abatement in case of serving of food in air conditioned primises

Thanks

[KASTURI SETHI]

Dear Querist,

See Notification No.24/12-ST dated 6.6.12 effective from 1.7.12. Service portion has been specified under Rule 2 C. (Determination of value of service portion...................). You cannot call it abatement other wise. (Service Portion specified as 40%). Abatement is under Notification No.26/12-ST.

[Rajagopalan Ranganathan]

Sir,

As per rule 2C of Service tax (Determination of Value) Rules, 2006 "Subject to the provisions of section 67, the value of service portion, in an activity wherein goods being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity at a restaurant or as outdoor catering is 40% of the total amount charged".

[Ganeshan Kalyani]

Sri Kasturi Sir, thanks for clearing the difference between abatement and valuation.

[Himansu Sekhar]

Such a concept makes him a true expert.

[VAMSI KRISHNA]

Thanks for all

AI Summary

Service portion valuation: restaurant food treated as partly service, distinct from abatement and affecting taxable base.
Under Rule 2C of the Service Tax (Determination of Value) Rules the value of the service portion where food or drink is supplied at a restaurant or as outdoor catering is prescribed as forty percent of the total charge; Notification No.24/12 ST gives effect to this valuation, while abatement is addressed separately under Notification No.26/12 ST.