Service tax on canteen service

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RANJIT KUMAR NAYAK

RANJIT KUMAR NAYAK (Querist)
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03 December 2013 Canteen operated by contractor at factory premises for employees. It is liable to service tax?

Kalam

Kalam (Expert)
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03 December 2013 As per Notification No.14/2013-Service Tax dated 22nd October 2013, the Central Government has made amendment in the Notification No.25/2012-Service Tax dated 20th June, 2012, following entry has been inserted after entry 19 of Notification No.25/2012 namely:-

“19A. Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year.”

Services provided in a canteen without AC or Central Heating system was already exempt and now through this notification all canteen services maintianed in factory covered under Factories Act 1948 would be exempt. Further, the position would not alter even if it is maintained by contractor.

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