Providing Mess Services in a Boarding School

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..... Providing Mess Services in a Boarding School
Query (Issue) Started By: - Devendra Agarwal Dated:- 2-9-2012 Last Reply Date:- 3-9-2012 VAT + CST
Got 2 Replies
VAT / Sales Tax
Is VAT applicable on contract for running a mess (providing all meals on regular basis) - catering service in Boarding School/College (it already included in negative list of services tax being an auxilliary serv .....

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..... ice)? Reply By Pradeep Khatri: The Reply: You are liable to get registration certificate under KVAT Act, if * The taxable turnover exceeds is likely to exceed Rs. 5 lacs at any time during the financial year, or * If taxable turnover exceeds Rs. 40000/- in any one month. and accordingly you would have to pay the tax. Further, in the Negative list it is mentioned that catering for students .....

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..... in any mid day meal scheme sponsored by the Government will be exempted for levy of service tax. If your services falls under this category then it is exempted otherwise not. Reply By Devendra Agarwal: The Reply: Tks dear. Notification No. 25/-ST 2012 dated 20.6.2012 Section 68 of Finance Act, 1994 Item No. 9 provides services to or by educational institutions in respect of education exepmpted .....

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..... from Service Tax by way of Auxiliary Education or Renting of Immovable Properties Services. The term auxiliary services in Section 66F include include services like providing dwelling units (hostel) for residence and food as bundeled services. Therefore exemption under service tax is hardly in doubt. However providing mess services in the hostel which would include providing cooked food is consde .....

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..... red sale like a food in a resturant or not is the question. May please reconfirm/deliberate if this transaction would constitute a sale of food in terms of VAT Act under KVAT in case the total expenditure by the mess exceeds Rs. 40,000 per month or Rs. 5 Lac in a year? Regards:
Discussion Forum - Knowledge Sharing .....

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