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Service tax applicable on office food vendor.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2017 Hi ,

I want to know the applicability of service tax in case of food vendor. He is cooking meal at his own place and providing packed thali to office employees. Company is paying to him for this and monthly billing is approx 1 lac monthly.

Thanks.

CA Chitta Ranjan Das

CA Chitta Ranjan Das (Expert)
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02 February 2017 As stated in the question, there is a contract or otherwise for supply of food to the cilent's place. It is a clear case of catering service. And as the total turnover during the year is Rs. 12 lakhs (Rs.1,00,000/- X12), the contractor is not considered as small service provider.Hence, he is liable to register himself under service tax laws. And collect service tax on its bill and pay it to the Govt. in due dates.

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