Catering service
This query is : Resolved
04 May 2013
Hey friends,
I have doubt regarding whether to impose service tax and/or vat on catering service provide's bill and if both taxes are applicable then what is the amount on which service tax or vat is calculated? and what is the provision for abatement in service tax?
Can you help me to short out my query...?
I have doubt regarding whether to impose service tax and/or vat on catering service provide's bill and if both taxes are applicable then what is the amount on which service tax or vat is calculated? and what is the provision for abatement in service tax?
Can you help me to short out my query...?
05 May 2013
Mr Pondya,
In this case a catering service is taxable under VAT and ST both. Some times charges are made for providing a service at different place including transportation.In such instances food value will be liable for VAT and exempting the remaining. But ST is applicable for the entire bill value.In some states this may not be allowed. It may be treated as a catering service is not divisible.It means you have to VAT and ST both on the entire catering contract receipts,like in a hotel..mjk
In this case a catering service is taxable under VAT and ST both. Some times charges are made for providing a service at different place including transportation.In such instances food value will be liable for VAT and exempting the remaining. But ST is applicable for the entire bill value.In some states this may not be allowed. It may be treated as a catering service is not divisible.It means you have to VAT and ST both on the entire catering contract receipts,like in a hotel..mjk
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05 May 2013
Service tax is applicable on the 50% of the bill value of catering as per the notification of Service tax as under:
Notification No. 24/2012 - Service Tax
Refer:
http://www.servicetax.gov.in/st-notfns-home.htm
VAT is a state subject and you have not mentioned which state VAT you are referring to ?
Notification No. 24/2012 - Service Tax
Refer:
http://www.servicetax.gov.in/st-notfns-home.htm
VAT is a state subject and you have not mentioned which state VAT you are referring to ?
Message likes :
1 times
06 May 2013
Thank you sirs..
06 May 2013
Thank you sirs..
18 June 2013
Yes I agree with both the experts and you are liable for both ST and VAT
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