Clarified by Service Tax Department of Chandigarh vide
letter dated 13-08-2015 that no service tax shall be charged for home delivery/pick
up of food because dominant purpose is not enjoyment of services like ambience,
air conditioning or personalized hospitality. Service tax can be charged only
if element of service is involved. Earlier restaurants such as McDonald’s, Domino’s, Pizza Hut etc.
were providing home delivery/pick up facility and were also charging service
tax. This clarifications shall bring much sought for relief to consumers
