levy of service tax on non Air Conditioned eating joint/canteen in factory., Service Tax

[vinay wakde]

Ours is a public limited company.  The Canteen (outdoor Catering service) facility is provided within the  factory premises to our workers/staff.  The eating joint/ Canteen is non Air-conditioned.   From 1^st April, 2013 places having air-conditioning facility shall be liable to Service Tax. However, restaurants which are in open air or garden or on terrace where no air-conditioning is available should not be charging service tax.

Kindly let us know whether no service tax shall be leviable on Canteen (outdoor catering service)facility provided by the service provider w.e.f. 01/04/2013 onwards, as the place of canteen is non A.C. or Service tax will be levied only 40 percent of the total bill assuming that 60 percent goes in the cost of food sold.

Regards,

VINAY

Posts / Replies

[Pradeep Khatri]

You duly fall under the Outdoor Catering Taxable Service not under the Resturant Services.