Catering service

This query is : Resolved

kunjan pandya (Querist)
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04 May 2013 Hey friends,

I have doubt regarding whether to impose service tax and/or vat on catering service provide's bill and if both taxes are applicable then what is the amount on which service tax or vat is calculated? and what is the provision for abatement in service tax?

Can you help me to short out my query...?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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05 May 2013 Mr Pondya,
In this case a catering service is taxable under VAT and ST both. Some times charges are made for providing a service at different place including transportation.In such instances food value will be liable for VAT and exempting the remaining. But ST is applicable for the entire bill value.In some states this may not be allowed. It may be treated as a catering service is not divisible.It means you have to VAT and ST both on the entire catering contract receipts,like in a hotel..mjk

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Ravindra Srinivasa

Ravindra Srinivasa (Expert)
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05 May 2013 Service tax is applicable on the 50% of the bill value of catering as per the notification of Service tax as under:

Notification No. 24/2012 - Service Tax

Refer:
https://www.servicetax.gov.in/st-notfns-home.htm

VAT is a state subject and you have not mentioned which state VAT you are referring to ?

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kunjan pandya

kunjan pandya (Querist)
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06 May 2013 Thank you sirs..

kunjan pandya

kunjan pandya (Querist)
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06 May 2013 Thank you sirs..