12 August 2012
Service Tax in India is for the whole country and not for a particular State. The provision for outdoor catering as below: (A) Date of Introduction: 10.09.2004 by Section 90 of the Finance (No.2) Act, 2004 (B) Definition and scope of service: “Caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion. (Section 65(24) of Finance Act, 1994 as amended) “Outdoor caterer” means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services. (Section 65 (76)(a) of Finance Act, 1994 as amended) "Taxable service" means any service provided or to be provided to any person, by an outdoor caterer. (Section 65(105)(zzt) of Finance Act, 1994 as amended) (C)Rate of Tax & Accounting Code: Rate of Tax Accounting Code Service Tax 10% of the value of services 00440051 Education Cess 2% of the service tax payable 00440298 Secondary and Higher Education cess 1% of the service tax payable. 00440426 Other –Penalty/interest As levied or applicable 00440052 ( Rate of tax is effective from 24.02.2009.) ( D ) Classification of Taxable Services: (1)The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason, a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :- (a) the sub-clause which p(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. ( Sec.65A of Finance Act,1994) (E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall,— (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the onsideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.
(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.—For the purposes of this section,— (a) “consideration” includes any amount that is payable for the taxable services provided or to be provided; (b) “money” includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value; (c) “gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and ‘book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. ( Sec.67 of Finance Act,1994)(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.—For the purposes of this section,— (a) “consideration” includes any amount that is payable for the taxable services provided or to be provided; (b) “money” includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value; (c) “gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and ‘book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. ( Sec.67 of Finance Act,1994)
12 August 2012
Service Tax in India is for the whole country and not for a particular State. The provision for outdoor catering as below: (A) Date of Introduction: 10.09.2004 by Section 90 of the Finance (No.2) Act, 2004 (B) Definition and scope of service: “Caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion. (Section 65(24) of Finance Act, 1994 as amended) “Outdoor caterer” means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services. (Section 65 (76)(a) of Finance Act, 1994 as amended) "Taxable service" means any service provided or to be provided to any person, by an outdoor caterer. (Section 65(105)(zzt) of Finance Act, 1994 as amended) (C)Rate of Tax & Accounting Code: Rate of Tax Accounting Code Service Tax 10% of the value of services 00440051 Education Cess 2% of the service tax payable 00440298 Secondary and Higher Education cess 1% of the service tax payable. 00440426 Other –Penalty/interest As levied or applicable 00440052 ( Rate of tax is effective from 24.02.2009.) ( D ) Classification of Taxable Services: (1)The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason, a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :- (a) the sub-clause which p(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. ( Sec.65A of Finance Act,1994) (E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall,— (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the onsideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.
(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.—For the purposes of this section,— (a) “consideration” includes any amount that is payable for the taxable services provided or to be provided; (b) “money” includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value; (c) “gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and ‘book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. ( Sec.67 of Finance Act,1994)(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.—For the purposes of this section,— (a) “consideration” includes any amount that is payable for the taxable services provided or to be provided; (b) “money” includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value; (c) “gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and ‘book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. ( Sec.67 of Finance Act,1994)
CAclubindia
