24 April 2011
sir,i provide catering service. i charge customers as per plate of food consumed.sir i want to ask that 1. is service tax is to be paid in total amount received by client.
2.second question if i ask the client to bring raw material by himself & only charge for service i provide like cooking food,supply of labous etc.than for what amout is service tax payable.
02 August 2025
Here's a clear answer to your queries about TIN and service tax for a catering service provider:
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### 1. **Is a Service Provider Required to Obtain TIN?**
* **TIN (Taxpayer Identification Number)** is mainly related to **VAT (Value Added Tax)** or **Sales Tax** on goods. * If you are only providing **services**, generally **TIN is not required**, because VAT applies to sale of goods, not services. * **Exception:** If you sell any **goods/materials or consumables** as part of your billing (e.g., supplying raw materials or goods), then you may need to register for VAT and obtain a TIN.
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### 2. **Regarding Service Tax for Catering Services**
* **Service tax** applies to **taxable services** as defined under the Finance Act. * Catering services come under the **taxable service category** (Restaurant and catering services).
#### Question 1: Is service tax payable on total amount received from the client?
* **Yes**, if you provide catering services including supplying food and service, service tax is payable on the **total amount charged** to the client (including cost of food and service charges).
#### Question 2: If client supplies raw materials & you only charge for service (cooking, labor, etc.), on what amount is service tax payable?
* In this case, **service tax is payable only on the amount charged for the service provided**, i.e., your **service charges** like cooking, labor, etc. * Since the client is supplying raw materials, the value of raw materials is not subject to service tax in your invoice.
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### Summary:
| Scenario | TIN Required? | Service Tax on Invoice Amount | | ------------------------------------- | ------------- | --------------------------------------------------- | | Only service provided (no goods sold) | No | On total amount charged (service fees) | | Service + supplying goods/materials | Yes | On total amount including goods + service | | Client supplies raw materials | No | Only on your service charges (labor, cooking, etc.) |
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**Note:** Service tax is different from VAT. For services, you deal with service tax (now GST), and TIN applies mostly to VAT on goods.
If you want, I can also update you on the GST regime (which replaced service tax and VAT) as it applies now. Would you like that?
CAclubindia
