Out door catering v/s canteen v/s eating joints
This query is : Resolved
14 March 2013
Company (CO) has entered in to agreement with one food company (SP) who provides lunch and snack to employees of CO. Employees pay part payment and Co. pay balance amount to SP i.e. subsidized rate.
SP has been provided with place and other instruments etc. by CO. SP cooks and serves in the airconditioned premises of CO (but does not serve liquor).
As per notification 25/2012 and 24/2012, does this service falls under Eating Joints or Out Door Catering?
Does eating joints means Canteen?
If this is eating joints than it will fall under 25/2012 and till March 2013 service tax is exempt..Kindly help..
SP has been provided with place and other instruments etc. by CO. SP cooks and serves in the airconditioned premises of CO (but does not serve liquor).
As per notification 25/2012 and 24/2012, does this service falls under Eating Joints or Out Door Catering?
Does eating joints means Canteen?
If this is eating joints than it will fall under 25/2012 and till March 2013 service tax is exempt..Kindly help..
09 August 2024
To determine the correct classification of the food service provided and its implications under GST, we need to consider the definitions and rules for "Outdoor Catering," "Eating Joints," and "Canteens."
### Classification of Services
1. **Outdoor Catering:**
- Outdoor catering refers to services provided for catering at locations other than a fixed establishment like a restaurant. This typically involves events, functions, or parties where food is provided at a specific location as requested by the client.
2. **Eating Joints:**
- Eating joints include restaurants, eateries, or food courts where food and beverages are served to customers within a premises or establishment.
3. **Canteen Services:**
- Canteen services generally refer to food services provided in workplaces, educational institutions, or similar settings, where food is served to employees or students at subsidized rates.
### Analysis Based on Your Description
1. **Arrangement Description:**
- **SP (Service Provider)** provides food to **CO (Company)** employees.
- **CO** provides the place and infrastructure (air-conditioned premises) for the service.
- **SP** cooks and serves food on-site.
- Employees pay part of the cost, and **CO** subsidizes the balance.
2. **Relevant Notifications:**
- **Notification No. 25/2012-ST**: Exempted the services provided by restaurants, eating joints, or canteens, under certain conditions.
- **Notification No. 24/2012-ST**: Deals with exemptions for specific types of services, including outdoor catering.
### Interpretation
Given that:
- The service is provided on the company premises.
- The food is served in an air-conditioned environment.
- The service is continuous and primarily intended for employees of the company.
This service appears to fit more closely with the definition of **canteen services** rather than **outdoor catering**.
### Classification and Taxation
- **Canteen Services:** As per the **Notification No. 25/2012-ST**, canteen services provided in workplaces are generally exempt from service tax. This exemption would apply as long as the conditions mentioned in the notification are met (like providing the service at a subsidized rate).
- **Outdoor Catering:** This typically applies when catering services are provided at events or locations other than the client's premises. Since the service is provided on the company's premises and not as a one-time event or function, it does not fall under outdoor catering.
### Conclusion
Based on the information provided, the service provided by the food company (SP) to the company's employees, in this case, would be classified as **canteen services** rather than **outdoor catering**. According to Notification No. 25/2012-ST, if the service qualifies as a canteen service, it would be exempt from service tax until March 2013.
To ensure compliance and get precise advice tailored to your situation, consult with a tax advisor or legal professional familiar with the latest GST laws and notifications.
### Classification of Services
1. **Outdoor Catering:**
- Outdoor catering refers to services provided for catering at locations other than a fixed establishment like a restaurant. This typically involves events, functions, or parties where food is provided at a specific location as requested by the client.
2. **Eating Joints:**
- Eating joints include restaurants, eateries, or food courts where food and beverages are served to customers within a premises or establishment.
3. **Canteen Services:**
- Canteen services generally refer to food services provided in workplaces, educational institutions, or similar settings, where food is served to employees or students at subsidized rates.
### Analysis Based on Your Description
1. **Arrangement Description:**
- **SP (Service Provider)** provides food to **CO (Company)** employees.
- **CO** provides the place and infrastructure (air-conditioned premises) for the service.
- **SP** cooks and serves food on-site.
- Employees pay part of the cost, and **CO** subsidizes the balance.
2. **Relevant Notifications:**
- **Notification No. 25/2012-ST**: Exempted the services provided by restaurants, eating joints, or canteens, under certain conditions.
- **Notification No. 24/2012-ST**: Deals with exemptions for specific types of services, including outdoor catering.
### Interpretation
Given that:
- The service is provided on the company premises.
- The food is served in an air-conditioned environment.
- The service is continuous and primarily intended for employees of the company.
This service appears to fit more closely with the definition of **canteen services** rather than **outdoor catering**.
### Classification and Taxation
- **Canteen Services:** As per the **Notification No. 25/2012-ST**, canteen services provided in workplaces are generally exempt from service tax. This exemption would apply as long as the conditions mentioned in the notification are met (like providing the service at a subsidized rate).
- **Outdoor Catering:** This typically applies when catering services are provided at events or locations other than the client's premises. Since the service is provided on the company's premises and not as a one-time event or function, it does not fall under outdoor catering.
### Conclusion
Based on the information provided, the service provided by the food company (SP) to the company's employees, in this case, would be classified as **canteen services** rather than **outdoor catering**. According to Notification No. 25/2012-ST, if the service qualifies as a canteen service, it would be exempt from service tax until March 2013.
To ensure compliance and get precise advice tailored to your situation, consult with a tax advisor or legal professional familiar with the latest GST laws and notifications.
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