Outdoor caterers service

This query is : Resolved

Dattatraya Trimbak Kale (Querist)
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07 September 2009 When total material is supplied by the customer to service provider ( who has obtained service tax regn. under "Outdoor Caterer",) the service provider is executing the order ( i.e.preparing food items ) only on labour charges basis.

1.Whether it amounts to taxable service ?

Note :The customer ( to whom the services are provided )is not selling the food (i.e. finished products) to anybody but serving at Seminar / Conferences.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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07 September 2009 Service tax is attracted on labour charges. However if total labour charges for the year does not exceed 10 lakhs then he is exempted from paying service tax on the ground that he is a small provider of service.