Determination of service value in restaurant and outdoor catering governs taxable service portion and service tax liability.

Determination of value isolates the service portion of composite restaurant and outdoor catering supplies by allocating a fixed proportion of the total amount charged-after deducting amounts charged for goods or services and any value added or sales tax-to compute the taxable service element; fair market value may follow generally accepted accounting principles. Providers are prohibited from taking Cenvat credit on duties or cess paid on goods under Chapters 1-22 of the Central Excise Tariff.

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