28 August 2015

Dept Clarification on Restaurant Service (Home Delivery)

Chandigarh Service Tax Dept. clarifies that free home delivery / pick-up of food is not liable to service tax; States that dominant nature of transaction is that of 'sale' as food is not served at restaurant and no other element of service such as ambience, live entertainment (if any), air conditioning or personalised hospitality is offered; Clarifies, "Service Tax can be levied if there's an element of 'Service' involved which would typically be the case where food is served in restaurant." : Dept Clarification 

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