788 Points
Joined December 2020
In the above query, if there is only 1 contract between the supplier of foods firm and the airlines which includes supply of food, boarding, handling charges, hi-lift charges, etc., then it will be considered as 'mixed supply' as the food services and the remaining services are not 'naturally bundled'. The tax rate applicable will be the highest rate of tax which will be considered from among the separate services.
The above services cannot be considered as composite supply as supplying food and boarding, handling charges are not naturally bundled.
If there are separate contracts for the various services, then the services will be normal supply i.e food supply service will be taxed separately from boarding services, etc.