VAT AND SERVICE TAX ON CANTEEN BILL

Dear All I am in confusion that whether an out door catering service provider(He is registered under outdoor catering services) is eligible to charge both Rajasthan VAT  and Service tax (on 50% Of Basic Value) on catering services even if he is processing foods in our manufacturing plant. He is chaging 14% VAT on lunch , dinner, snacks, lemon water and on other things he is suppling to the employees. If he is eligible to charge VAT  in which rate he is elegible to charge . Water,and Electricity is provided by our company to the service provider. He employes his labour and own purchsed gas, vegitables , rice, wheat etc and prepares foods for employees.