ASHOK KUMAR SAHO (OFFICE EXCISE & CUSTOM) (142 Points)
31 August 2013| WE INTRODUCE OURSELVES AS AN MANUFACTURING UNIT, AND WE PROVIDE CANTEEN FACILITY (LUNCH / DINNER) TO OUR EMPLOYEES THROUGH OUTDOOR CATTERING CONTRACTOR ON CONTRACT BASIS AND PAYMENT IS MADE ON MONTHLY BASIS AFTER SERVICE TAX CHARGED |
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SIR, WE WOULD LIKE TO KNOW THAT HE CAN CHARGE VAT ON THE SAME BILL, IF YES THEN AT WHAT RATE ??... |
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 02 September 2013
VAT TDS should be generally done at the composition rate applicable to hotels in your state. It will be mostly 4 or 5% in any state(4% in Karnataka). This is to be done on the total amounts receivable by the canteen contractor(which includes subsidy from the management aand payment by the employees). Such TDS made should be paid to the govt through a return flled every month. A certificate of the tds made is to be issued to the contractor. If the amounts payable to a contractor is less than Rs5 lakhs in a year VAT TDS need not be done.....mjk
CAclubindia
