Sale of Food by Residential Hotels (Rule 59)
Rule 59 provides for determination of taxable turnover of sales/ service of food & drinks in case of residential hotels charging composite amount, for lodging and boarding, which is inclusive of breakfast, lunch, or dinner or any such combination.
The turnover in such cases has to be determined by applying specified percentage on the amount of such composite charges.
Reduction in Sale Price in certain cases
If a dealer has chosen not to collect tax separately from its customers, the tax payable by him on the turnover of sales shall be calculated by reducing from the turnover of sales an amount arrived at through the following formula: [Rule 57(1)].
Sale Price * Rate of Tax/(100+Rate of Tax)
In case of a dealer selling goods, originally manufactured by a dealer enjoying exemption under the Package Scheme of Incentives, and the tax is not recovered separately in his purchase invoice, the taxable turnover shall be determined by reducing from the sale price, the amount of purchase price paid in respect of such goods including the price of goods used in the packing if packing is charged separately. [Rule 57(2)].
In case of sale of goods under any hire purchase agreement or any system of payment by instalments, component of interest, as specified in agreement [Rule 57(4)].
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