VAT on Catering Contract


This query is : Resolved 

06 December 2007 Our company have a caterer for two canteens who provide unlimited food and snacks.

The caterer charges 2 % on the value of food (single rate per meal), tea/milk/coffee and 4 % on snacks provided by them.
No VAT is levied on fruits.

I referred VAT Act and no where i could find 2 %.

Is he right in charging 2%?


06 December 2007 Which State?
In case of such doubts it is always advisable to enquire the same from the supplying vendor. Let the vendor reply.

06 December 2007 Hi Karthik,

There are basically three rates in VAT 4%, 12.5% and 0%.

But in some exceptional cases 2% VAT is also applicable.

The VAT ate for sale of 2nd hand cars is 2%.

Please refer any VAT book appplicable for your state for details.

Rgds/

Vineet


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