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VAT on Catering Contract

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(Querist)
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%?
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CA. O.P. Agarwalla

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CA. O.P. Agarwalla (Expert)
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.
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CA. Vineet Grover

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CA. Vineet Grover (Expert)
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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