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)
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.
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.
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