What will be the vat & service tax on catering, hall rent

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This query is : Resolved

CA KI$HOR PATEL (Querist)

15 January 2015 My client is having Banquette Hall which he provides on Rent for functions and occassions. He also provides Decoration and Catering service in that Hall.
Now my question is that How he should prepare his billing for his services ?

Example :
Hall Rent 50000
Decoration 40000
Catering Service 60000
Total 150000

How to calculate VAT & Service Tax on above.
Which Circular, Abatement, if any applicable ?
Any change if we can derive the value of food in catering bill ?

@*CS Siddharth Bumb. *

@*CS Siddharth Bumb. * (Expert)

15 January 2015 As per mega exemption notification number 24/2012, there is abatement scheme to outdoor catering service. 60% of 12.36% shall be taxable under service tax. Outdoor catering means : Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of such outdoor catering.

But if you are providing hall, lawns etc alongwith outdoor catering service then it will covered under bundled services i.e. u/s 66F of finance act and 70% of 12.36% shall be taxable.

Hence in your case service tax is leviable at the rate 8.652%.

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