Interpretation of notification 14/2013 - service tax

As you all know CBEC has issued a Notification No. 14/2013 - Service Tax which reads as follows

“19A. Services provided in relation to serving of food or beverages by a canteen maintained  in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year.”.

 

In the light of Notification No. 14/2013 - Service Tax

 

What will be the implication of Service Tax Liability in the following cases ?

 

1)  If the Canteen is run by Factory itself (not charging any amount from its employees)

2)  If the Canteen is run by Factory itself (charging nominal amount from its employees)

3)  If the Canteen is run by a third party (Vendor) within the factory premises. sad

 

 

Please Comment

Replies (3)

i think ST shall be applicable on all cases.

1) Free Canteen Service provided by Factory - Not taxable as it is not a 'service' within the meaning of section 65B(44) as there is no consideration.

2) Nominal rate charged by Factory - If Non-AC Canteen, then non-taxable due to covered under Negative List. If AC Canteen, then exempted due to new N/N-14/2013

3) Canteen run by Third party at Factory - Same as (2)

Dear Manoj agarwal ji,

Please give your clarification on this link;

/forum/industrial-canteen-service-st-liability-268792.asp#.UnTS13Bgf74

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