Please advice on applicability of service tax on Catering services provided by a caterer to an organisation, upon which amount servicetax is leviable, whether VAT is applicable, if yes, then on what amount.
24 August 2008
Catering service is liable for service tax under the head Outdoor Catering Service if following conditions are satisfied:- 1.Outdoor caterer is a person ; 2.Such person is providing service in connection with catering; 3.Catering is done in a place other than his own; 4. Catering place may be the one provided to him by the client; 5. Providing the place may be on tenancy or otherwise.
The abatement available to a Outdoor Caterer is 50% where he also provides food and for this purpose indicates that the gross amount charged is inclusive of the charges for the supply of food.
VAT is leviable @ 12.5% on sale of food items including beverages on the entire amount excepting Service tax charges
CAclubindia
