Mvat on sale of canteen run on contract basis

rinku jha   06 April 2016

rinku jha

 4 points

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Hello Friends,

Below is my query  - 

An Assessee is an Partnership Firm (A). It enter into an agreement with Infrastructure co. (B) ( B - builds Technology & Corporate Parks) to run canteen in Techonology & Corporate Park. following are the few contract terms - 

1. There are various counter for sale of food at the cafeteria. The assessee is alloted to sale Snack Counter (sell of Tea, Coffee, Poha, Upma etc.). Other counter like Juice Counter, Full Meal Counter etc are alloted to different vendor.

2. The menu is fixed & predecided by the B co.. Rates were fixed at the time of contract. It can only be change with prior approval of B co.

3. All cash collection (of all vendors) is in the hands of B co. only. 

4. Payment Terms - Sale collection from 1st to 15th of the month will be paid in between 20th of the month & sale collection from 16th to 31st of the month will be paid in between 6th of the next month.

5. B co. collects rent from A @ fixed % of gross sale of the respective month.

6. No outsiders are allowed to enter cafeteria.

7. Other service like Plates, Spoon Glass etc are provided by B Co. only. The washing & cleaning facility is also provided bt the B Co. to all the vendors of that cafeteria.

8. Also in agreement it is mentioned that any future government taxes that may be applicable from time to time such as service tax etc will be in the scope of A.

9.Canteen Premise is loacted at Refugge Area Cafe.


Is VAT & Service Tax applicable on the above case?

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