Service tax rate applicable on catering services

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Premchand Sah (Querist)
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29 April 2016 I am working with a Power Plant, we have given a contract to ABC ltd for Catering service provided inside of our power plant to serve food to employees. My question is that...is service tax applicable on this services,if yes ...what is rate of service tax is applicable on catering service inside the premises.
Regards
Premchand Sah

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 April 2016 No service tax applicable on this service. It will fall under industrial canteen service which is exempted.

CA Sandeep Kumar

CA Sandeep Kumar (Expert)
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29 April 2016 It should be taxable & service tax should be charged on 60% value of service. Rate is 14.5%.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 April 2016 Mr CA Sandeep Kumar refer Notification 14/2013 it is exempted even the food is out sourced.

CA Sandeep Kumar

CA Sandeep Kumar (Expert)
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29 April 2016 Dear Sir, Pl read this notification carefully & also analysis the complete view of this service. As per my opinion, I brief here, there are two service w.r.t canteen. One is provided by employer to his employee & second is provided by contractor to employer. This notification exempted the service provided by employer to his employee not to the contractor.
For more clarification plz read this :
https://www.caclubindia.com/share_files/s-tax-on-canteen-service-61638.asp

Thanks & Regards,
CA Sandeep Rajput

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 April 2016 This is the service provided by employer only they have only out sourced it. Hence exempted.
Awarding a contract to supply food in a canteen amounts to supply of food by employer.
Take other experts view available in this regard.

See the link.
https://taxguru.in/service-tax/industrial-canteens-are-exempted-from-service-tax.html

CA Sandeep Kumar

CA Sandeep Kumar (Expert)
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30 April 2016 Dear Sir, Opinion may be differ person to person.

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