Ac canteen in factory

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Shivani

Learner

1167 Points Posted on 12 September 2014

Exemption Notification 25/2012

19A. Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948, having the facility of air-conditioning or central air-heating at any time during the year.

I have read this serial no. 19A of exemption notifcation many many times.

What this means is that if a factory canteen has AC then the service is going to be exempt !!

Really !!

This means that if factory canteen does not have AC then service won't be exempt.

This is crazy ! !

If you read Serial No. 19, then there they are only exempting non-AC restaurants from service tax.

I have no objection if government wants to exempt AC factory canteens from service tax but whats the rationale of not exempting non-AC factory canteens from service tax.

How many factories have AC canteens anyways?

SHOCKER

Regards

Shivani

shivaniadream @ gmail.com

Replies (5)

Guest

Posted on 12 September 2014

It is in relation to food services provided at place where ac or central heating facility is thr thn it is going to be taxable .. So this is exception in that way. Hope u got it

Shivani

Learner

1167 Points Posted on 13 September 2014

i understand that its just the rationale behind it which is not understandable

after all service tax is going to go out of the pockets of the factory workers.

seems those who are sitting in AC canteen wont pay service tax and workers taking their food in non-AC factory canteen will have to shell out money for service tax.

SHOCKER