Is service tax applicable to canteen contractors?

Hi,

Para 11 of draft circular F. No 354/127/2012-TRU dated 27-7-2012 reads as follows -

‘Whether the services provided by the employer are otherwise covered by the Negative List or exempt. For example, the services of food and catering provided by the employer in a canteen would normally fall outside the tax net unless such canteen has both the facility of air-conditioning as well as license to serve liquor (S. No. 19 of the Mega exemption)’.

Thus, the draft circular acknowledges the fact that the mega exemption notification exempts canteen provided by employer [Even if the circular is only draft circular, if whatever stated in the circular is correct, it will continue to be correct even if final circular is not issued on this aspect.

Read more here: https://www.dateyvs.com/canteen-services-and-food-services/

Thanks//Vaibhav
Click thank button to convey your appreciation

I think if employer runs canteen  no ST will applicable, but here canteen runs by contractors na, ST will attract.

Experts openion welcome on this issue: