Ravi Prasad (Self employed) (148 Points)
30 October 2010Hi everybody,
I have a doubt. One person is selling packed cooked food to another who resells it to his customers. Can you call it as catering and the former a Caterer just because he is delivering the food packets to the premises of the reseller?
Please Guide
Shripramara
Madhukar N Hiregange
(Chartered Accountant)
(39039 Points)
Replied 30 October 2010
Mere delivery is not catering. Only liable for VAT.
Savan Somani
(Corporate Manager)
(478 Points)
Replied 30 October 2010
As per Section 88 of the Finance Act, 1997 caterer has been defined to mean any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accouterments for any purpose or occasion and an outdoor caterer has been defined as a caterer engaged in providing services in connection with catering at a place other than his own.
In case of Outdoor catering:
Outdoor Catering attracts both Service tax as well as Vat.
In service tax there is an abatement of 50% of the total amount charged has been provided (Notification No. 30/97-ST refers)
Coupons for Outdoor catering given to customer will attract service tax.
Sales by counting coupon will attract VAT. 
Ravi Prasad
(Self employed)
(148 Points)
Replied 01 November 2010
Agreed Sir, This activity may be defined as "Outdoor catering" but under VAT they say that it is a mere sale of packed food. How to distinguish?
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