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TMI BlogService Tax on Canteen servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, Entry no. 19A of Notification no. 25/2012 dated 20.06.12 inserted dated 20.06.12 vide notification no. 14/2013 dated 22.1013 envisages exemption to services provided in relation to the serving of food of beverages by a canteen maintained in a factory covered under Factories Act, 1948. In this connection we are getting canteen services that is required as per Factories Act from the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utdoor caterer for this purpose space for cooking of foods and a hall to service food to employees provided by the company . In such case Canteen Service Tax provider is eligible to get the above exemption . I would like to state that our Canteen service tax provider has taken service tax registration under the under Outdoor Caterer . And service tax department of their jurisdiction insistin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to pay service tax thereon. Reason mentioned is that - he is providing catering service to the factories from his centralized kitchen and in some cases he is cooking the food in the factory premises itself. Hence the service contract is with the respective factories only as an Outdoor Caterer . In view of the same above said exemption is not applicable. Kindly advise . With best Regards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradeep Jain - Reply By Madhukar N Hiregange - The Reply = The outdoor caterer should send a Speed post letter stating that the exemption in 19A is ONLY for the outdoor caterer as it is in relation to service of food and beverages. Many companies who became aware of this change have stopped paying the outdoor caterer. - Reply By Ravi Kumar Somani - The Reply = Dear Mr. Pradeep Jain, In a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll essence exemption should be applicable to the outdoor caterer from service tax under entry 19A. However, still if your caterer decides to charge service tax for the service provided, it shall not add to your cost as you can pay and take CENVAT credit of the same. In very recent judgement of a Delhi Tribunal a stay was granted and CENVAT credit was allowed to be taken. Please find below the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the principal bench TATA BLUESCOPE STEEL LTD. 2014 (34) S.T.R. 49 (Tri. - Del. )= 2014 (5) TMI 725 - CESTAT NEW DELHI Stay/Dispensation of pre-deposit - Outdoor Catering service - For providing canteen facility to workers in factory - It is input service, on which assessee is eligible to take credit of Service Tax paid by them - Section 35F of Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1944 as applicable to Service Tax vide Section 83 of Finance Act, 1994 - Sections 65(76a) and 65(105)(zzt) of Finance Act, 1994. [para 5] Further, Hon ble Bombay High Court in the case of CCE, Nagpur v. Ultratech Cement (supra) = (2010 (10) TMI 13 - BOMBAY HIGH COURT has also held that the cenvat credit would be admissible. - Reply By Rakesh Chitkara - The Reply = Are the Judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents cited by Mr. Ravi Kant Somani pertain to demand-period pre or post negative list ? - Service Tax on Canteen services - Query Started By: - Pradeep Jain Dated:- 22-9-2014 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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