Re-sale of food & bakery products are not part of 'restaurant services': AAR
[Square One Homemade Treats, In re [2019] 110 taxmann.com 494 (AAR - KERALA)]
The applicant is purchasing and selling food products (i.e., cakes, cookies, ready to eat homemade packed food, etc.) procured from other dealers. All food items sold are pre-packed and the applicant has no kitchen facility to cook food at their premises. It has filed an application for advance ruling to
determine whether resale of food and bakery products falls under restaurant services?
The Authority for Advance Rulings observed that in case of restaurant, food and drinks are prepared and served to the customers. In the present case, already cooked food is served from the counter and the facility is given to the customers to consume such food in the premises. Hence, applicant is running a bakery where ready to eat food items are sold and mere facility to consume food items in the bakery premises cannot be classified as restaurant services. Therefore, re-sale of food & bakery products by the applicant is not covered under restaurant services.
[Square One Homemade Treats, In re [2019] 110 taxmann.com 494 (AAR - KERALA)]
The applicant is purchasing and selling food products (i.e., cakes, cookies, ready to eat homemade packed food, etc.) procured from other dealers. All food items sold are pre-packed and the applicant has no kitchen facility to cook food at their premises. It has filed an application for advance ruling to
determine whether resale of food and bakery products falls under restaurant services?
The Authority for Advance Rulings observed that in case of restaurant, food and drinks are prepared and served to the customers. In the present case, already cooked food is served from the counter and the facility is given to the customers to consume such food in the premises. Hence, applicant is running a bakery where ready to eat food items are sold and mere facility to consume food items in the bakery premises cannot be classified as restaurant services. Therefore, re-sale of food & bakery products by the applicant is not covered under restaurant services.
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