Service tax on foods delivered by the club
This query is : Resolved
05 March 2013
A Corporate Member orders Lunch in a Club. The Club raises a bill that includes:
(A)Restaurant items i.e food
(B)Packing Charges
The lunch is delivered to the Corporate Member's premises by the Club Staff.
Will Service Tax be charged on the whole bill amount i.e on both a + b
or only one b?
(A)Restaurant items i.e food
(B)Packing Charges
The lunch is delivered to the Corporate Member's premises by the Club Staff.
Will Service Tax be charged on the whole bill amount i.e on both a + b
or only one b?
05 March 2013
service tax shall be only on the service component. the cost of food item is not chargeable to service tax.
06 March 2013
So according to my understanding, Service tax will be charged only on packing charges. Am i right Sir?
24 July 2025
You’re on the right track! Here’s the detailed breakdown for **service tax on food delivered by a club**:
---
### Components of the bill:
* **(A) Food items (restaurant services)**
* **(B) Packing charges**
---
### Service tax treatment:
* **Food items (A)**:
Food itself is considered a *sale of goods*, not a service.
So, **no service tax on the cost of food**.
* **Packing charges (B)**:
Packing is considered a *service* related to the food service.
So, **service tax applies on packing charges**.
* **Delivery charges (if any separately stated)**:
If the club charges separately for delivery, service tax would apply on that too as part of restaurant or catering services.
---
### Summary:
| Charge type | Service Tax Applicability |
| ---------------- | ------------------------------- |
| Food cost | **No** |
| Packing charges | **Yes, service tax applicable** |
| Delivery charges | **Yes, if separately charged** |
---
### So, **service tax will be charged only on packing charges (and delivery charges if charged separately), NOT on the cost of food itself**.
---
If the packing charge is included in the overall food bill without separation, then service tax may be calculated on the total amount including packing (since packing is a service). But ideally, it should be shown separately.
---
Need me to check exact rates or notifications from that time?
---
### Components of the bill:
* **(A) Food items (restaurant services)**
* **(B) Packing charges**
---
### Service tax treatment:
* **Food items (A)**:
Food itself is considered a *sale of goods*, not a service.
So, **no service tax on the cost of food**.
* **Packing charges (B)**:
Packing is considered a *service* related to the food service.
So, **service tax applies on packing charges**.
* **Delivery charges (if any separately stated)**:
If the club charges separately for delivery, service tax would apply on that too as part of restaurant or catering services.
---
### Summary:
| Charge type | Service Tax Applicability |
| ---------------- | ------------------------------- |
| Food cost | **No** |
| Packing charges | **Yes, service tax applicable** |
| Delivery charges | **Yes, if separately charged** |
---
### So, **service tax will be charged only on packing charges (and delivery charges if charged separately), NOT on the cost of food itself**.
---
If the packing charge is included in the overall food bill without separation, then service tax may be calculated on the total amount including packing (since packing is a service). But ideally, it should be shown separately.
---
Need me to check exact rates or notifications from that time?
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