services in relation to to serving of food or beverages

[Harsh Jindal]

A service provider is providing services in relation to to serving of food or beverages by a restaurant. The hotel is equipped with the fascility of centralized air conditioning. Is the provider liable to pay service tax?

[YAGAY and SUN]

Yes, Service Tax is applicable.

[Harsh Jindal]

But there are two conditions mentioned in the act.

1. having facility of centralized ac/heating in any part at any time during the year

2. have liscense to serve alocohol.

Hotel is not fulfilling both requirement.

AI Summary

Service tax on restaurant services may apply where premises have centralized air conditioning and a licence to serve alcohol.
Service tax is asserted to apply to restaurant services, but applicability is presented as contingent on two statutory conditions: the establishment having a facility for centralized air conditioning or heating at any time during the year, and holding a licence to serve alcohol; the practitioner reports the hotel meets neither condition and therefore disputes liability.