Dear friends,
Please assist me in preparation invoice for business of catering services. What is percentage of service tax payable by service receiver & Provider. What is the treatment of service tax in the invoice.
Ravi Chandra (CA FINAL) (98 Points)
08 September 2014Dear friends,
Please assist me in preparation invoice for business of catering services. What is percentage of service tax payable by service receiver & Provider. What is the treatment of service tax in the invoice.
JSS
(Practice)
(58 Points)
Replied 08 September 2014
Dear Ravi,
Given that the present service is Catering, Reverse charge mechanism is not applicable. Hence, the service receiver is not liable to pay Service Tax to the government. The Service provider needs to charge Service Tax and pay the same to the government.
With regard to valuation, as per Rule 2C of Service Tax (Determination of Value) Rules, 2006, as amended by Notn No. 24/2012 dated 6-6-2012, Service Tax on outdoor catering services is payable only on 60% of the Gross amount charged. Please refer to the notification in case of any clarification.
CAclubindia
