Service tax and vat on catering
This query is : Resolved
19 September 2014
Dear sir,
in our factory we received the food from catering service.food prepared outside of the factory and served in our canteen. Now our cater raise the bill without service tax,vat @2% only charged.
kindly advice,
is it correct or what we do this case .
in our factory we received the food from catering service.food prepared outside of the factory and served in our canteen. Now our cater raise the bill without service tax,vat @2% only charged.
kindly advice,
is it correct or what we do this case .
19 September 2014
It is correct in terms of N/N 14/ 2013- ST, dated 22nd Oct'13.
However, the said notification is subject to dual interpretations:
A) whether services provided by canteen in a factory is exempt?
B) Whether services provided(even by third party) in relation to serving of food by canteen in a factory are exempt?
In my view, the second interpretation holds good.
Therefore, the practise followed by service provider seems to be correct.
Furthermore, even if he doesn't charge, it shall not affect your liability.
However, the said notification is subject to dual interpretations:
A) whether services provided by canteen in a factory is exempt?
B) Whether services provided(even by third party) in relation to serving of food by canteen in a factory are exempt?
In my view, the second interpretation holds good.
Therefore, the practise followed by service provider seems to be correct.
Furthermore, even if he doesn't charge, it shall not affect your liability.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Query regarding TDS on EPFO Higher Pension Arrears*
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
