Good News! Restaurants Cannot Impose Service Tax on Take-Away or Parcel Food Items, Says CESTAT
Ordering food could become less expensive. The Customs, Excise and Service Tax Appellate Tribunal or CESTAT recently held that restaurants cannot impose service charge on take-way or parcel food items. “It has to be held that no service tax can be levied on the activity of takeaway of food items as it would amount to sale and would not involve any element of service,” the tribunal ruled in a case involving Haldiram Marketing. It further observed that service charge can be levied if services such as dining facility, washing area and clearing of tables are used by customers. Tandoor Ban: Tandoori Roti To Become Thing of Past As Madhya Pradesh Government Bans Tandoors in Bhopal and Three Other Cities, Here’s Why.
No Service Tax on Parcel Food Items Ordered From Restaurants
Service tax cannot be levied on take-away/ parcel food items sold by restaurants: CESTAT
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— Bar & Bench (@barandbench) February 17, 2023
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