The Central Excise and Service Tax Commissionerate has advised all restaurants and eating joints to obtain Service Tax registration as per the amendment made in the budget.
Official sources said service of food or beverages by restaurants, eating joints or mess having air conditioning or central air heating facilities in any part of the establishment are liable to pay Service Tax with effect from April 1, 2013.
Restaurants, eating joints and mess falling under the jurisdiction of Surat-I Central Excise and Service Tax Commissionerate under the city limits including Pandesara,
Udhna, Bhedvad, Bhestan, Dindoli, Kamrej, Palsana, Mandvi, Bardoli, Mahuva, Valod, Vyara, Songadh, Uchhal, Nizar, Harira, Suvali, Mora, Rajgari, Bhatlai, Damka, Vansva, Abhva, Bhimrad, Ghabheni, Kansad, have been asked to obtain service tax registration at the earliest.
Arun Shetty, President, South Gujarat Hotels and Restaurant Association (SHARA), said, "As per the notification, restaurants and food joints having Air Conditioning (AC) system have been covered under the service tax net. We have been asked to take Service Tax registration number for the same."
The hotel and restaurant owners in the city and district are unhappy. "Now eating food is going to be a costly affair in AC restaurant, food joints etc. This is going to increase the popularity of roadside eateries in the city," said a restaurant owner.
Prashant Kaduskar, Additional Commissioner of Service Tax Department, said, "Computation of service tax has started from April. We have advised all restaurants, food joints and messes with air conditioning or central air heating facility to get service tax registration certificate immediately."