Out door catering Services, Service Tax

[Aitha RajyaLakshmi]

Sir,

Our Company has given a contract to maintain an Executive Guest House at our premises. The contractor provides food to the guests who reside in guest House and claim the amount by producing a signed copy by the Guest ( stating the number of meals, Tea, Break Fast etc... provided) .Whether Service Charge can be charged under the category of Out door catering Service?

Posts / Replies

[KASTURI SETHI]

It is covered under Section 66(E)(i) of the Finance Act. It is declared service. Contractor will have to collect service tax from the company and deposit with the Central Govt. 60% is service portion under Notification No.24/12-ST. The provider of catering service cannot take credit on inputs falling under Chapter 1 to 22 of Central Excise Tariff Act.

[Himansu Sha]

I agree with the views of kasturi sir

[MARIAPPAN GOVINDARAJAN]

I also endorse the views of the experts.