RESTAURANT SERVICE

[vishal sharma]

Hello All,

I am a member of a club, having provision for restaurant service as follows :

(1)   AC restaurant, only food served, liquor not served.

(2)   Open air restaurant adjacent to (1), only food served, liquor not served.

(3)   AC restaurant, food and liquor both served.

(4)   Open air roof top restaurant on top of restaurant mentioned in (3), food and liquor both served.

(5)   AC Hall which are given to members on booking  for rent. And based on his requirement, food and liquor is served.

(6)   Open Air Terrace on top of AC Hall mentioned in (5) , which are given to members on booking for rent. And based on his requirement, food and liquor is served.

The club have single excise registration for serving of liquor, with area earmarked therein.

I would like to seek confirmation on my view as follows :

(a)    Restaurants mentioned in (1), (2) and (4) should be out of service tax net, as it fails to satisfy both the conditions i.e. Airconditioning and Bar

(b)   AC Hall and Open Air Terrace as mentioned in (5) and (6) should also be out of service tax net, as it is not a restaurant, but given to members for private purpose.

(c)    Only AC restaurant mentioned in (3) should attract service tax.

Looking forward for your valuable comments

Thanks

Vishal Sharma

AI Summary

Discussion on Service Tax Applicability for Club Facilities: AC Restaurant Serving Alcohol Taxable, Others May Vary Per Board Circular. A club member inquires about the applicability of service tax on various dining and rental facilities offered by the club. The member believes that only the air-conditioned restaurant serving both food and liquor should be subject to service tax. Other facilities, such as non-AC restaurants and rental halls, should be exempt. Responses suggest consulting a board circular for further clarification and confirm that only the AC restaurant serving alcohol should attract service tax, while other areas may not be taxable under restaurant services but could fall under different taxable categories.