Hotel business without air conditions service tax wil be tax

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Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2016 i run the the canteen on contract business with out Air Condition will be service tax taxable?. if taxable with effect from which date when will be applicable. please explain with case lawsir

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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16 September 2016 As per Sr. No. 19 of Notification No. 25/2012-ST, dated 20-06-2012 w.e.f 01-07-2012 as amended w.e.f. 01-04-2013, service provided by 'eating joint' is exempt if there is No AC or central heating.
In Canteen, Food is served on regular basis and hence it can be properly termed as 'eating joint', even if run by outside contractor.
hence, Service tax can apply only if canteen is air conditioned and it not under factories act.
In Maosaji caterers V. CCE (2015)51 GST 594=58 taxmann.com 351 (CESTAT), it was held that service provided in canteen is outdoor catering. However, validity of this decision is doubtful for service provided on an after 01-07-2012.
Thanks.

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