Service tax on canteen, Service Tax

[Yatin Bhopi]

We are manufacturer and having Non-AC canteen in factory (not mandatory as factories act). All necessary arrangement for cooking food  i.e. gas, grains, vegetables, pans etc. provided by company upto Rs. 15000 per month. Any excess to this is contributed by employees. Canteen service provider only arrange for cooking food and serving the food in canteen. He charged for manpower supply i.e on 25 percent of value. Whether his billing for man. supply is correct? Or  his service is cover under Sr. No 19 of Not. No 25/2012 service tax is exempt? Pl. guide

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Dear Sir,

The billing done by the canteen service provider is correct.  Sl. No. 19 of 25/2012 is not applicable in this case since he provides only manpower for the purposes of canteen.   

Regards,

M. Govindarajan