Vat on industrial canteen run by catarer

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Querist : Anonymous (Querist)
30 May 2014 In our factory canteen run by outside catarer please advice about tax structure in bill or at the time of payment.
in same case contractor has to pay certain amount to the canteen workers on behalf of us based on certain legal orders which will be reimbursed to the contractor along with little amount of service charge. please lets know whether this reoimbursement is attract any tax liability.

31 May 2014 if you are pvt ltd/ltd company then you have to pay service tax on labour bill of reverse charge machnasim @ 9.27%

and for canteen bill he will charges local sales tax.


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