Registration for catering services

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Tushar

Tushar (Querist)

03 February 2016 how a person has to take registration under vat and service tax for catering services

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

03 February 2016 VAT is a subject on the State List of the Seventh Schedule of Constitution of India whereas Service Tax is under Union List of the Seventh Schedule of Constitution of India. Further VAT is levied on sale of goods and Service Tax on sale / rendering of service. Actually there is no VAT on catering services. VAT is payable on the foodstuffs sold and charged on the value of the same. Service Tax is levied on the service of catering. Though not realistic, there can be an instance when a caterer may not require registration under VAT since he caters only exempted foodstuffs, but even then he will have to register for Catering Service if his turnover exceeds Rs.9 lacs and collect and remit Service Tax once his turnover crosses the threshold limit of Rs.10 lacs.

Tushar

Tushar (Querist)

04 February 2016 But in a case of catering service there is also transferring the goods, then why it is not liable to get registration under dvat

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

05 February 2016 VAT being a subject under State List of the Seventh Schedule of Constitution of India, the tax on sale of goods may vary from state to state. Since I do not practice on Delhi VAT, I will not be able to comment on your query, but apparently Delhi VAT has excluded Catering Business from the definition of Sale of Goods. Why a particular commodity or item is taxed at a lower rate or nil rate is a question only the legislature in its wisdom can answer.

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