Catering Servie

This query is : Resolved

Himanshu Tandon (Querist)
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04 August 2007 My client is a caterer and he is avinling 50% abaitment on supply of food and Catering Servie. but he is showing the sale of food sapretly and Catering service seprately in a single bill. and paying sales tax on sale of food amount. the food portion is about 80% and Service Prtion is only 20% but department is providing abatement only 50%.
now my qussion is as under:-

1. weather he shall charge service tax on only catering service when food is billied sapretly in single bill and trade tax is paid on it.

2. whether abatement is allowed 50%when both supply and service are single biled and saprate figures.

Himanshu Tandon
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CA Nikita

CA Nikita (Expert)
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05 August 2007 hi!!

1)service tax is charged only on catering services...

2)yes 50% abatement will bbe allowed only if catering services are rendered...and the bill shows that it is inclusive of charges of supply of food...

hey hope this clears the query...