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TMI BlogService Tax on Outdoor Caterers and Pandal or Shamiana operatorsX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 accoutrements 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. 2.2 Further, the taxable service rendered by an 'outdoor caterer' means any service provided to a client by an outdoor caterer. The service tax is chargeable to the rate of 5% and the value of the taxable service in relation to service provided by an outdoor caterer to a client, is the gross amount charged by such caterer f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 33/97-ST. Service Tax will however be attracted on inflight catering services provided to the airlines by catering contractors/star hotels etc. 3. PANDAL OR SHAMIANA CONTRACTORS 3.1 As per Section 88 of the Finance Act, 1997, 'pandal or shamiana' means a place specially prepared or arranged for organizing an official, social or business function and a 'pandal or shamiana contractor' means a person engaged in providing any service, either directly or indirectly, in connection with the preparation, arrangement, erection or decoration of a pandal or shamiana and includes the supply of furniture, fixture, lights and lighting fittings, floor coverings and other articles for use therein; 3.2 The taxable service rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dal contractor provides free services, say for religious events, there will be no tax liability. Similarly in the cases of cancellation of the booking made by the client no service rendered and hence there shall be nil service tax liability. 4. General 4.1 As per section 69 of the Finance Act, 1994 read with rules 3 4 of the Service Tax Rules, 1994, every person responsible for collecting of the service tax is required to be registered with the concerned Central Excise Officer appointed under Rule 3. Notification No. 29/97-ST, dated 25.7.97 amends rule 2 of the said rules so as to prescribe that the person responsible for collecting the service tax in relation to the services provided by an outdoor caterer shall be outdoor caterer w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir doubts. All possible steps may kindly be taken by the Commissioners to facilitate smooth implementation of the imposition of service tax on the above services. 4.3 The Commissioners are requested to give wide publicity to the fact that the service tax on the above two services will come into force from 1st August, 1997. They should also give suitable publicity through newspapers and through the associations of trade immediately to apprise them about the provisions of law and procedures to be followed. 4.4 It has been decided that for all the Commissionerates, the concerned Commissioner having jurisdiction in central excise matters will have corresponding jurisdiction for service tax matters. This applies to commissionerates in Mumb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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