1. RESTAURANT SERVICE CA. MANISH MALHOTRA, +91-9717560005, camanishmalhotra@gmail.com

2. Be Aware if you provide service in relation to- serving of food or beverages by a restaurant, eating joint or a mess AND HAVING the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year

3. BECAUSE OF CHANGE IN MEGA EXEMPTION NOTIFICATION NO. 25/2012 dated 20.06.2012 vide notification number 3/2013 dated 01.03.2013 Worrying ?

4. Relevant points for you:- Before notification this services was taxable only for those have following essential:- 1. Restaurant /eating joint/mess having facility of air- conditioning or central air-heating in any part of the establishment, at any time during the year, and 2. Having licence to serve alcoholic beverages.

5. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year. Notification no. 3/2013 The notification will be applicable w.e.f 1 st April 2013. NOW ALL RESTAURANT/EATING JOINT OR MESS WHO COVER ABOVE ARE LIABLE TO SERVICE TAX PROVISIONS. Whether or not they serve alcoholic beverages.

6. Restaurant Bill Service Charge Total VAT @ 12.50 % on Rs. 2000 Total before service tax Service Tax@4.94% (i.e 40% of 12.36%) on RS. 2200(as per Rule 2C of the Valuation Rules) TOTAL BILL Note Effective service tax rate will be 7.42% if outdoor catering Amount 2,000 200 2,200 250 2,450 108.68 2558.68 =====

7. Apply for registration A person liable to pay service tax should file an application for registration within thirty days from the date on which the service tax on particular taxable service comes into effect or within thirty days from the commencement of his activity When to start new billing? You can Start billing in new format w.e.f 1/04/2013 subject to having valid registration certificate(ST-2)

8. CA. Manish Malhotra (B.com, ACMA, ACA) (Partner) MTM & CO, Chartered Accountants Contact +91-9717560005 E-mail camanishmalhotra@gmail.comcamanishmalhotra@gmail.com manish@caconsultancy.org Web www.caconsultancy.orgwww.caconsultancy.org Suggestions/feedback are also invited