Service tax applicable

This query is : Resolved

girish (Querist)
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03 April 2009 Dear All,
we r service providing co. & one of our client is having guest houses all over india. we provides house keeping services as well as catering.In case of catering we used to purchase groceries,vegetables,beverages & made the complete food and the same served to guest.

and whatever the expenses we incurred that we have to reimburse it from the client.

so,want to confirm that service tax is applicable on that purchase of groceries,vegetables & other raw materials?
or vat is applicable?

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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05 April 2009 50%exemption on the total amount charged is available for outdoor caterers who provider catering services including supply of food subject to the following conditions:
1. The the caterer also provides food and the invoice, bill or challan issued for purpose indicates that it is inclusive of charges for supply of food.
2. The service provider has not claimed any CENVAT credit on input, capital goods or input services
3. No exemption has been availed under Not 12/03-ST.