Service tax on outdoor catering

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Davison Mathew (Querist)
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21 August 2008 Hi,

Please advice on applicability of service tax on Catering services provided by a caterer to an organisation, upon which amount servicetax is leviable, whether VAT is applicable, if yes, then on what amount.

very urgent.....

Thanks & regards
Davison mathew

Srinath

Srinath (Expert)
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24 August 2008 Catering service is liable for service tax under the head Outdoor Catering Service if following conditions are satisfied:-
1.Outdoor caterer is a person ;
2.Such person is providing service in connection with catering;
3.Catering is done in a place other than his own;
4. Catering place may be the one provided to him by the client;
5. Providing the place may be on tenancy or otherwise.

The abatement available to a Outdoor Caterer is 50% where he also provides food and for this purpose indicates that the gross amount charged is inclusive of the charges for the supply of food.

VAT is leviable @ 12.5% on sale of food items including beverages on the entire amount excepting Service tax charges

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