Invoicing of catering services

Dear Ravi,

Given that the present service is Catering, Reverse charge mechanism is not applicable. Hence, the service receiver is not liable to pay Service Tax to the government. The Service provider needs to charge Service Tax and pay the same to the government.

With regard to valuation, as per Rule 2C of Service Tax (Determination of Value) Rules, 2006, as amended by Notn No. 24/2012 dated 6-6-2012, Service Tax on outdoor catering services is payable only on 60% of the Gross amount charged. Please refer to the notification in case of any clarification.