Payment of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 A person / firm is providing catering service of providing the food for for marriage. He It is charging 60% Service Tax on total bill amount (liable to pay by the service provider under Abatement on services principle), which is calculated as certain rate per plate per person, i.g.Rs.220/- per plate for 250 persons = Rs.55000/-, whether remaining 40% is liable to be paid by the person receiving service.If it is liable how to pay it? What is the challan No, A/c head etc.Whether this service is coming under Reverse Charge Mechanism ?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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08 October 2013 In case of catering service; 60% of value is for value of service provided and remaining is for value of goods supplied
Hence remaining 40% is liable for vat if he is registered with vat

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Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 One of my friend has hired caterer to provide food at the reception party at marriage hall . The caterer is going to charge 60% Service Tax in the bill.My question is whether remaining 40% is to be paid by the person RECEIVING SERVICE?.IN THIS CASE MY FRIEND?

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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08 October 2013 No
You do not have to pay any service tax other then the amount charged on bill
In short you donot have to pay any amount other then bill