Hey,
Is Service Tax applicable to a catering business which merely sells food to its clients, but does not serve them at their at the client's place? The business is to just deliver the food, and involves no serving.
SHIVA KUMAR (PROPRIETOR) (25 Points)
03 May 2012Hey,
Is Service Tax applicable to a catering business which merely sells food to its clients, but does not serve them at their at the client's place? The business is to just deliver the food, and involves no serving.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 04 May 2012
Mere sale of food is not liable to service tax. Delivery at customers premises is likely to be interpreted by the department as catering service and hence litigation prone. But if you are selling the food for delivery at buyer at the same price at which it is sold at your premises, you have good case to argue.
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