Service tax on canteen in factory (out door catering service
This query is : Resolved
12 December 2015
Sir,
I am Arun working as Accounts Officer,
In our factory we have canteen, we give contract to one contractor which means he only purchase all materials & he provide labour. Every month he is give canteen bill to as.
For Example :
Material value - 235000 apporx
labour - 45000 apporx
280000 (it includes food and labour)
he calculates service tax for his bill value 280000x14.5%
in this case my question is for which value we need to pay service tax either bill value or labour value.
if we need to pay labour value only then how to raise material bill?
sir pl gide me.
I am Arun working as Accounts Officer,
In our factory we have canteen, we give contract to one contractor which means he only purchase all materials & he provide labour. Every month he is give canteen bill to as.
For Example :
Material value - 235000 apporx
labour - 45000 apporx
280000 (it includes food and labour)
he calculates service tax for his bill value 280000x14.5%
in this case my question is for which value we need to pay service tax either bill value or labour value.
if we need to pay labour value only then how to raise material bill?
sir pl gide me.
12 December 2015
Sr. No. 19 A of Notification 25/2012 mentions that if canteens maintained in a factory, covered by factories act, are exempted from Service Tax.
But however contractors are liable to pay ST (since you have said outdoor catering 60% is liable for ST)
But however contractors are liable to pay ST (since you have said outdoor catering 60% is liable for ST)
12 December 2015
No service tax payable on canteen in factory, it is exempted. If at all it is payable it is payable on labour value only.
12 December 2015
Sir,
in our factory we are not running canteen it is running by out side contractor and also he is having separate service tax registration number. he purchase material and making food in our promises and provide labour for serve at month end he is giving bill for material & labour. we provide only space for canteen.
kindly resolve my query.
in our factory we are not running canteen it is running by out side contractor and also he is having separate service tax registration number. he purchase material and making food in our promises and provide labour for serve at month end he is giving bill for material & labour. we provide only space for canteen.
kindly resolve my query.
12 December 2015
No service tax payable on factory canteen whether it is run by you or by the contractor.
12 December 2015
Sir,
Then what type of bill he need to raise.
whether a service bill or any?
if service bill pl give eg or other also.
Then what type of bill he need to raise.
whether a service bill or any?
if service bill pl give eg or other also.
12 December 2015
sir,
in his bill how to he show material cost & labour cost?
whether separately or combined?
in his bill how to he show material cost & labour cost?
whether separately or combined?
12 December 2015
Let him raise a combined bill as canteen bill without service tax.
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12 December 2015
Sir,
We are paying to the contractor 50% of bill value from our side & rest 50% from employees salary.
in this case service tax applicable?
We are paying to the contractor 50% of bill value from our side & rest 50% from employees salary.
in this case service tax applicable?
12 December 2015
In this case also service tax not applicable.
12 December 2015
Thank you Seetharaman sir now my doubt is cleared once again thank you for your valuable clarifications.
12 December 2015
Thank you Seetharaman sir now my doubt is cleared once again thank you for your valuable clarifications.
12 December 2015
SIR,
Yesterday Our CTO visited our factory (Puducherry) he told for that canteen bill value we need to pay sales tax 2% (cooked food)for each bill since 2007.
for industrial canteen is applicable for (cooked food) any sales tax?
Yesterday Our CTO visited our factory (Puducherry) he told for that canteen bill value we need to pay sales tax 2% (cooked food)for each bill since 2007.
for industrial canteen is applicable for (cooked food) any sales tax?
12 December 2015
VAT may be applicable I am not sure Check up with other experts. The VAT responsibility is on the contractor not on the factory the contractor may be having basic exemption limit.
12 December 2015
Dear Seetharaman Sir,
service tax on canteen exemption notification 2013.
since that notification nearly we have paid service tax Per month 20,000 approx
now date its approx 430000/- is this amount is refundable if yes?
how to we get refund and what is the proceedure to get that refund?
service tax on canteen exemption notification 2013.
since that notification nearly we have paid service tax Per month 20,000 approx
now date its approx 430000/- is this amount is refundable if yes?
how to we get refund and what is the proceedure to get that refund?
13 December 2015
Login to ACES and file on line refund. Procedure you can view in ACES site.
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