You view is correct. Service tax is leviable  only if the food or beverage is sold out side restaurant or out door catering.

Hi,

You may refer to  re Jabalpur Entertainment Complexes Pvt. Ltd. (GST AAR Madhya Pradesh) Appeal Number : Order No. 12/2018 Date of Judgement/Order : 27/08/2018, where in it was confirmed that GST is applicable on sale of pop corn, cold drinks etc in cinema theaters. 

Supply of Food and Beverages at theaters is to be treated at  GST rate of 18% in case of supply at A/c counters and 12% at non- A/c counters. Input tax credit is available . 

Hope this information is useful.

From  1st April, 2013 air-conditioned restaurants, eating joints, mess would be subject to Service Tax irrespective of the fact whether they have licence to serve liquor or not [kindly refer Notfn. no. 3/2013-ST which amends Notification No. 25/2012-ST].

It may be noted that the terms used viz. �restaurant', �eating joint' or �mess' in the Mega exemption Notification No.3 25/2012-ST are not defined therein.

Since the terms used are not defined and the only differentiation that has been put forward for levy of Service Tax is having vis-�-vis not having facility of air-conditioning or central air-heating, it appears that all air-conditioned places serving food may get covered within the ambit of Service Tax.

kindly refer Notfn. no. 3/2013-ST which amends Notification No. 25/2012-ST].

HI 

Sorry . Thought your query was with GST.

in case your theater was a Non AC theater , then service tax on food and beverages is NOT applicable. 

Please refer to https://fci.gov.in/app2/webroot/upload/circulars/Notification%20No%2025-%2040.pdf

You can also refer to judgement of supreme court in  AIR1999SC3909: :K. Damodarasamy Naidu & Bros. and Ors. vs The State of Tamil Nadu and Ors. In this case, supreme court held that  levy of service tax on supply of food and beverages by restaurants and services of lodging provided by hotels as unconstitutional.

Hope this information is useful. 

If any service is given along with sale then it's liable like same applicable to hotels. But hotels now deal. With gst and not service tax. Service tax is abated in many areas by government

Any service that is provided or offered free of cost is exempt from service tax.

Most of these entertainment places (movie halls, amusement parks etc.) usually give out contracts to private players to supply food. The service tax currently (pre-GST) is 15%, and the entertainment industry enjoys an abatement of 60% on service tax, i.e., only 40% of the 15% service tax has to be paid. 

VAT assumed 14.5%, Service tax is 40% of 15 i.e., 6, 

Total tax is 20.5%

In movie theaters (multiplexes), food and beverages are taxed at a VAT of 20.5% and an average of 30% tax is levied on tickets, depending on the state. Movie tickets will attract GST at 28%. As food and beverages fall under the supply of food/drinks in outdoor catering, they will attract 18%.

Thus, we see that the GST rates for the entertainment industry are lower than the VAT and Service Tax.  GST will have a mixed effect on the entertainment industry, depending on the states. 

In movie theaters (multiplexes), food and beverages are taxed at a VAT of 20.5% and an average of 30% tax is levied on tickets, depending on the state. Movie tickets will attract GST at 28%. As food and beverages fall under the supply of food/drinks in outdoor catering, they will attract 18%.

Thus, we see that the GST rates for the entertainment industry are lower than the VAT and Service Tax.  GST will have a mixed effect on the entertainment industry, depending on the states. 

Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.

In case the aggregate value of taxable services provided by a service provider is less than Rs.10 lakh over the course of the previous financial year, you can claim exemption from service tax. In case the aggregate value of taxable services provided over the course of the previous financial year is more than Rs.10 lakh, service tax exemption cannot be availed.

Dear client,

With effect from 1.7.2012 no service tax is payable on food supplied in a canteen if it is without the facility of air conditioning or central heading whether such canteen is located in a factory or office. The position will be the same if the canteen is run by outside contractor, then it will be called 'eating joint' and not outdoor catering. With effect from 22.10.2013 no service tax is payable on foods supplied in a canteen, even if it has air conditioning facility , if the canteen is maintained under Factories Act (that is, in a factory employing 250 workers or more), the position will be same if the canteen is run by outside contractor. 

Thank you.

- Since, you are selling the packed food etc. and not services are given by this way , hence no service tax is applicable.