I have doubt regarding whether to impose service tax and/or vat on catering service provide's bill and if both taxes are applicable then what is the amount on which service tax or vat is calculated? and what is the provision for abatement in service tax?
05 May 2013
Mr Pondya, In this case a catering service is taxable under VAT and ST both. Some times charges are made for providing a service at different place including transportation.In such instances food value will be liable for VAT and exempting the remaining. But ST is applicable for the entire bill value.In some states this may not be allowed. It may be treated as a catering service is not divisible.It means you have to VAT and ST both on the entire catering contract receipts,like in a hotel..mjk
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