restaurant in club - serving food to members

This query is : Resolved

Doshi mahendra Kumar (Querist)
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11 September 2018 Club has Appointed outside caterer to run the canteen( Caterer buy raw material than prepare food0 Food Being Served by waiters /server of club
Premises where canteen is located is belonging to Club, No Rent Is being Charged by Club to caterer .( Room Tariff Iis below Rs 7500/ in club)
Caterer Charge @18% Being Outsider
Club also Charge to members @18%
What Rate should be charged by caterers on Club ? 5% or 18%
What Rate Club Should Charge to members ?

Secondly Canteen Contractor also Supplied food for party and Function and Charge For Food @ 18 %
Club Provides Bundle of Services to Members Including Hall, Food being Supplied by caterer
Caterer Raise the bill on Club and Club Raise the bill on members .and charge 18%
Suppose Cater raise Invoice directly to members What Rate Should be charge by caterer ?

Defination of canteen and caterer is not well explained ?

Mahendra Doshi
11/09/2018

Rajesh Kumar

Rajesh Kumar (Expert)
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11 September 2018 What rate should be charged by caterer to club: Depaends upon what service is provided by the caterer to the club. Though not clear from the query, it appears that caterer prepares the food and serves to members. For this caterer charges the club.- Rate is 5% if the caterer is taking ITC credit, 18% if not taking ITC.
Clubs provides various services to members. On membership fee 18% will be charged. As the club is providing various services like rooms, membership, restaurant etc.; I suppose club is taking ITC. If club is taking ITC, club should charge members 18%.
If the club is taking ITC, it is irrelevant as to whether the caterer is charging 5% or 18%. Whatever the club pays to the caterer as GST, is available as ITC.
If the caterer raises invoice directly to members- caterer will charge 5% if not taking ITC, or 18% if taking ITC.