Service tax on meals provided to employees

A company is providing meals in it's canteen to it's staff at concessional rates and thereby deducting these meal expenses from it's employees salary on monthly basis. Would it be under the purview of service tax under the services other than  in negative list? Please suggest.

Replies (3)

The declared services includes the activity wherein food etc is supplied. Under exemption we have sl no. 17 restaurants, eating joints or mess liable only if they have a/c + licen\se to serve liquor. Maybe we can claim the exemption even if amount are recovered. 

Originally posted by : Madhukar N Hiregange

The declared services includes the activity wherein food etc is supplied. Under exemption we have sl no. 17 restaurants, eating joints or mess liable only if they have a/c + licen\se to serve liquor. Maybe we can claim the exemption even if amount are recovered. 

Thanks Mr. Madhukar, moreover i have found out that a draft circular 354/127/2012 has been issued by TRU whereunder it is clear that mega exemption would be valid in this case.

Dear Madhukar Sir,

I agree to your reply that as per mega exemption notification, mere AC restaurant or mess or eating joint without any license to serve alcohol is exempt. I have a query in this context?

Suppose, food is supplied by an out door caterer at the company's canteen, then would it be taxed as Outdoor catering service?

Thanks in advance!

Saravanakumar G.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details