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Servicr tax

CA Shyamal Mistry (M.Com, A.C.A.) (128 Points)

11 September 2012

Does service tax applies on catering services. Eg:- catering services provided in a hostel to students.

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Vikas (CA) (1135 Points)
Replied 14 September 2012

Dear Mr. Mistry,

The exempt service under catering is as follows under Notification No.25/2012-ST dated 20.06.2012;

"9. Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-

(a) auxiliary educational services; or

(b) renting of immovable property;"

Clause 2."(f) “auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution;"

In my opinion, you are not covered by such notification, hence no exemption is there for you.