Wednesday, 14 January 2015

Chhattisgarh High Court upheld legal sanctity of services tax levy on hotels and restaurants

Service Tax : Article 366(29A)(f) does not indicate that service part is subsumed in sale of food/beverages; hence, service tax on service portion of supply of food/ beverages in hotels/restaurants is Constitutional; however, States cannot levy VAT on service portion quantified as per service tax law


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