TaxTMI 
TaxTMI 
What is the rate of tax under composition wherein applicant running canteen at theatre, all inward purchase from local regd delaers only there is no cooking/manufacturing , is it 1% or 5%
Rate of tax
03 Jan 2018 
4 Replies 
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Composition scheme rate treats a canteen at a theatre as a restaurant, making it ineligible for manufacturer rate.
A canteen operating as a restaurant within a theatre is treated as a restaurant for GST composition purposes and therefore cannot claim the lower manufacturer composition rate; the manufacturer-specific composition rate is limited to eligible manufacturers while restaurant-characterized entities must follow the composition rate applicable to restaurants. (AI Summary)
A canteen operating as a restaurant within a theatre is treated as a restaurant for GST composition purposes and therefore cannot claim the lower manufacturer composition rate; the manufacturer-specific composition rate is limited to eligible manufacturers while restaurant-characterized entities must follow the composition rate applicable to restaurants. (AI Summary)