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Service Tax on Food bills

Assistant Manger Finance

I would like to know whether service tax is applicable on food bills in the Hotels (Luxury). If yes what is the percentage? I also would like to know what is the minimum and max (%) applicable on the food bill? Is there any other tax is possible apart from this??   

 

Regards

Shankar G

 
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Chartered Accountant


As far as I am aware, service tax is not chargeable on food bill, since catering services such as restaurants or cafes are not under the service tax net . 

 

VAT @ 12.5 % is chargeable on the food bill. Some places also have a service charge on the bill amount, that is not to be confused with service tax. 

 
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Chartered Accountant


Sorry got confused with the last post, in case of indoor catering no service tax is chargeable, indoor catering implies restaurants, cafes etc. 

 

In case of outdoor catering, service tax is chargeable. 

“outdoor caterer” means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services;

any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accouterments for any purpose or occasion and an outdoor caterer has been defined as a caterer engaged in providing services in connection with catering at a place other than his own.

It's important to note the part where it states, at a place other than his own. Same applies to inflight catering, service tax is chargeable on the same. 

 
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There is no service tax on food bill.

 
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