service tax

Querist : Anonymous (Querist) 02 May 2011 This query is : Resolved
The recent ammendment of the service tax rules has introduced tax on the restaurants having airconditions providing food alongwith alcoholic beverages subject for tax @3.3% on bill value w.e.f 10.05.2011.
my question is that, wheather a restaurant having separate rooms serving food at the one part and food alongwith alcoholic beverages at another part be liable to pay above tax on both the bills drawn?

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R.Ramachandran (Expert) 02 May 2011
If a restaurant satisfies the two conditions i.e. restaurant shall have license to serve, alcoholic beverages and air conditioning in part of the premise; then service tax is payable. It is not necessary that the customer to whom the services are provided must consume alcoholic beverages. Even if the customer consume food and other items, the service tax will be payable by the restaurant. The separation rooms / portion for serving of alcoholic beverages and food; and other rooms/portion for only food etc., will be of no use to avoid service tax, so long as the Restaurant remains one entity.

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