TaxTMI 
TaxTMI 
we have a canteen run in our factory by an out door caterer, what changes should be made in contract so that the canteen converts in restaurant (non AC) to avoid payment of service tax.kindly suggest.
Restaurant
11 May 2013 
1 Reply 
1440 Views Asked by
Non-AC restaurant status can avoid service tax if open to the public and operated under a rental with menu pricing.
Outdoor catering service applies where the person serving food uses premises provided by the company to serve employees. To treat the facility as a restaurant, adopt a rental agreement with the caterer, have food sold at prices displayed on a menu card, and ensure the restaurant is open to the public; if the establishment qualifies as a non-AC restaurant catering to any customer, service tax on outdoor catering would not arise. (AI Summary)
Outdoor catering service applies where the person serving food uses premises provided by the company to serve employees. To treat the facility as a restaurant, adopt a rental agreement with the caterer, have food sold at prices displayed on a menu card, and ensure the restaurant is open to the public; if the establishment qualifies as a non-AC restaurant catering to any customer, service tax on outdoor catering would not arise. (AI Summary)