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Whether a sale of food to a reseller called catering

Ravi Prasad (Self employed) (148 Points)

30 October 2010

Hi everybody,

I have a doubt. One person is selling packed cooked food to another who resells it to his customers. Can you call it as catering and the former a Caterer just because he is delivering the food packets to the premises of the reseller?

Please Guide

Shripramara

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3 Replies

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 30 October 2010

Mere delivery is not catering. Only liable for VAT.

1 Like

Savan Somani (Corporate Manager) (478 Points)
Replied 30 October 2010

As per Section 88 of the Finance Act, 1997 caterer has been defined to mean 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.

In case of Outdoor catering:

Outdoor Catering attracts both Service tax as well as Vat.

In service tax there is an abatement of 50% of the total amount charged has been provided (Notification No. 30/97-ST refers)

Coupons for Outdoor catering given to customer will attract service tax.

Sales by counting coupon will attract VAT.