Canteen services

This query is : Resolved 

26 June 2015 A Company gives their premises to a food vendor who sell food to the employee of the company.

The company do not charge any rent, in turn their is an oral understanding for selling food at subsidized rates. Their is no contract to this effect.

The Food is directly sold by the vendor to the employee, and employees pay the 100% charges. Their is no payment from the company's side except for a permission to use their premises.

Is their any Liability for the company (Not the Vendor who sells the food) under service tax laws, if yes what are they. Please also help with specific sections/circulars etc

Regards
Nikhil Khandelwal

26 June 2015 Dear Sir,
As per my view, there is no liability of service tax on the Company which granted rent free area to Canteen vendor.



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