Hotline: 1800 102 2007
X
Search Business Opportunities
Nov, 10 2014

Customers to be tax free at AC restaurants: Kerala HC

The court said that the bill raised on the customer cannot be split as charged for the service part and as charged for the food part.

Customers will no longer have to pay extra taxes levied on them at air conditioned restaurants or a bar announced Kerala High Court, as per a report in ET.

This will bring a relief to customers who earlier paid approximately 12.36 percent service tax on 40 percent of the total bill amount, a division bench of the Kerala high court said the Union government's decision to impose service tax on food and beverages served at such restaurants was not within the competence of Parliament.

Upholding a single judge order, the division bench said, “It cannot be said that it is an activity of service. When the said activity is deemed to be a sale of the food and other articles of human consumption by a constitutional definition, tax on the said activity can be imposed only by the state.''

The court said that the bill raised on the customer cannot be split as charged for the service part and as charged for the food part.

The Union government had moved the HC in appeal against the single bench order. The Kerala Bar Hotels Association's argument was that the supply of food and beverages in a restaurant is a sale, enabling states to impose tax on the same.
The HC further said that states alone have the legislative competence to enact any law imposing tax on this issue.

Comment
Related opportunities
  • Laundry & Dry Cleaning
    About Us: House cleaning and laundry is quite exhausting. Washing your..
    Locations looking for expansion Uttar pradesh
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Noida Uttar pradesh
  • Sports Accessories
    About Us: Kawasaki Sports is one of the world’s leading sports..
    Locations looking for expansion Tamil nadu
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater chennai Tamil nadu
  • Three wheeler (Auto) showroom
    About Us: Funded by Paytm, rocketship.vc & Snow Leopard Technology Ventures,..
    Locations looking for expansion Chandigarh
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 00
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Chandigarh Chandigarh
  • Mobile & Communication/Internet Connections
    About Us: In 2009 Gerardo Taglianetti, founded Phonup amongst first companies  in..
    Locations looking for expansion Delhi
    Establishment year 2009
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities