27 March 2016
Can someone let me know about service Tax applicability on canteen situated in a manufacturing industry? The canteen is run by a outdoor caterer. Workers purchase the coupons from caterer @Rs.7.00 per plate and the caterer charge balance Rs. 15.00 from the industry. Total cost per plate is Rs. 22.00. Thus the industry is charging nothing from the workers.
Now my question is what is the ethical practice being followed by the such industries pertaining to service tax applicability?
Those who are practically dealing such cases are requested to share their views.