Service tax applicable if food served in open air, a part of AC Restaurant?

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  1. Pat

    Pat New Member

    Need clarity on the below points. Kindly advise.
    Set up: Confectionery, with Air Conditioned Cash Counters but seating in open air (Non AC)
    1. If my main model of business is take-away (Although I do serve food to walk ins too), do I have an option of not charging the service tax for that section of clientele ?
    2. If a part of my seating (majority seating) for consumption of food is outdoor (Non-AC), do i have an option of not charging service tax to this set of clientele and charge it to clientele who sit in AC ?
    3. Can taxes on franchise fee/ rentals be taken as an input for this kind of business?
    4. Have seen a few bakeries charge VAT @ 5% and not 14.5% (based in AP/Telangana) on food/bakery items for dine in as well as take away/delivery. Legal ? Couldn't find any info on 5% on food items in the VAT Schedules !

    Any advice/suggestions in this regard would be appreciated.

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