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Query on vat

CA Mukesh Goyal (Assistant Manager) (143 Points)

30 December 2011

A company is selling food(tea, snacks, lunch, dinner) to theri employee through canteen (owned by company itself). Whether vat should be charged by the company or not. If vat is applicable please provide be related section/notification/circular.

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4 Replies

Kaushik (Professional) (549 Points)
Replied 30 December 2011

Originally posted by : CA Mukesh Goyal
	A company is selling food(tea, snacks, lunch, dinner) to theri employee through canteen (owned by company itself). Whether vat should be charged by the company or not. If vat is applicable please provide be related section/notification/circular.

I don't find relvant section/notification/circular, but if company sells, vat shold be charged. But in my openion compnay should give free snacks, lunch, etc. to their employee.

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CA Mukesh Goyal (Assistant Manager) (143 Points)
Replied 30 December 2011

Mr Kaushik i want to clear that company is charging from their employees for food.

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 30 December 2011

Dear Mukesh Goyal,

Vat is not applicable on tea and drinks but it is applicable on all meals.

CA Dharmendra Prasad(CS Final) (CS Professional) (33 Points)
Replied 30 December 2011

Friends anr respected Sir,

Please solve my problem. My client is a registered dealer (Interior decorator) in west Bengal and also has Service tax registration. Now they are performing works contract of a Company in Hyderabad. They are buying all raw materials from Hyderabad and using the same in Hyderabad.

Now my question is that Their Contract price is Rs.12 lacs and value of material is unascertained.

How tax (VAT or CST or SERVICE TAX) should be calculated and at what price ???????????