Outdoor catering service classification: onboard private caterers liable for service tax; operator taxed only on retained remuneration. Catering services provided on board trains are classifiable as outdoor catering service, with private onboard contractors liable to pay service tax on amounts they bill for food and catering. Amounts retained by the principal operator as its commission or facilitation fee are taxable under the service head reflecting that remuneration. Expenses incurred as a pure agent do not form part of taxable value if the conditions of the Service Tax (Determination of Value) Rules are satisfied.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Outdoor catering service classification: onboard private caterers liable for service tax; operator taxed only on retained remuneration.
Catering services provided on board trains are classifiable as outdoor catering service, with private onboard contractors liable to pay service tax on amounts they bill for food and catering. Amounts retained by the principal operator as its commission or facilitation fee are taxable under the service head reflecting that remuneration. Expenses incurred as a pure agent do not form part of taxable value if the conditions of the Service Tax (Determination of Value) Rules are satisfied.
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