Service Tax on Industrial Canteen ?

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Pl.let me know that, the service tax is applicable on Industrial canteen which provides the catering services to its employees.  The catering services includes the meal and snacks to the workers.  Can Service tax is applicable on the industrial canteen which is run by a contractor.

Replies (4)
Originally posted by :LAXMIKANT JAIPURKAR
" Pl.let me know that, the service tax is applicable on Industrial canteen which provides the catering services to its employees.  The catering services includes the meal and snacks to the workers.  Can Service tax is applicable on the industrial canteen which is run by a contractor. "

Dear LAXMI KANT,
 

                                   This will be covered under the outdoor caterring Service. if do you know more about this, please write me email sachinagarwalcallb @ gmail.com with full detail.

Outdoor caterer service means providing catering services at any place, other than his own. As industrial canteen caterer provide catering services at a place owned by the industry, it is covered under outdoor catering services.

Originally posted by :LAXMIKANT JAIPURKAR
" Pl.let me know that, the service tax is applicable on Industrial canteen which provides the catering services to its employees.  The catering services includes the meal and snacks to the workers.  Can Service tax is applicable on the industrial canteen which is run by a contractor. "


 

Yes there is  liability under service tax w.e.f. 10.9.2004   under outdoor caterering. Since the materials ( food) are also transferred, the value of the same if indicated separately ( appropriate VAT paid) would be available as a deduction. Where such detail not available a 50% abatement is allowed provided that the bill clearly indicates that food was also provided.  

at which rate VAT applicable ?

On which amount vat can attract ?


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