Service Tax is not applicable on home delivery or pickup of orders

If this is really true, our Weekly/Bi-weekly Pizzas could become cheaper by Rs 100 😀
 
i wonder why delivery of food to home is not considered a service.
pickup i understand. but home delivery is a service.

also should mention here... Starbucks people always ask you if you are going to have your coffee inside the cafe or outside. if inside, you pay extra through service tax.
 
Think that would be delivery charges and not going into making of food .. Think as the circular above states it's the ambience, personalised hospitality etc is what constitutes a service
 
I think tax is for luxury service tax for sitting in ac room. While delivery is not.
 
I thought they had brought out guidelines earlier that even non-ac restuarants did not have service tax & some % of bill will be used for service tax in case of ac restaurants.
 

so where does one complain? this was a takeaway order today.

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FoodService tax is 40% of service tax I.e. 40% of 14% service tax. For ac restaurants only.
Ac means you sit there and enjoy the luxury, take away doesn't involve all that so not needed. Though most restaurants still apply it on all the orders , Starbucks is first on I hear about.
Is a good thing , at least someone got thinking.
 
Well seeing that bill was what I talking about . most Indian eateries don't even understand tax system completely.
Tell them to mend there software, I think it's also responsibility of tax expert or media to make people aware about.
Can't complain anywhere mate, our govt is happy to collect whatever xtra they can
 
insane. complaining to the guy on the counter is probably not going to change anything. they barely get my order right 50% of the times 😀
 
In most places the billing system/device is not capable, or these people dont bother to change the settings whenever applicable.
 
Think returning order should be one way to tackle them but don't think its practical..hehe
These guys are smart..once everyone stops paying service tax on home deliveries, they will start charging for delivery or packaging charges (both of which technically are not service taxes or charges).

Also shouldn't the government be refunding the service tax collected wrongly charged on home deliveries? Or is it that they have been doing so but the restaurant owners wrongfully claiming it?
 
the situation is such that you cannot be sure if these restaurants and businesses are actually depositing the service tax in the first place.
they could be maintaining multiple books so only a fraction of the actual charge might be officially deposited with the government.
 

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