Canteen run by an outdoor caterers

[CS Kushwaha]

Dear Experts,

Canteen run by an outdoor caterers in factory.Two types of bill submitted by him ,(i) Bill for sale of coupo base on price fixed per Thali, (ii) Bill for total labour employed by him in canteen + 5 % service charge onlabour charge bill..

what will be service tax provisions on these two bills and at what rate.

Urgent please.

[DR.MARIAPPAN GOVINDARAJAN]

Have you got clarified in the issue raised by you? If not please inform.

[Ravikumar muthusamy]

sir my client let out their canteen on commission basis .so no cash or bank transactions by them. but they continued to pay vat and service tax from their a/c only. whether the contractor needs to take vat and ST2 registration or can they run under client vat and st2 registrations

AI Summary

Catering service classification may determine whether coupon sales are treated as sale of goods or taxable catering services.
Issue concerns classification of two billing streams by an outdoor caterer for a factory canteen: per thali coupon sales (whether sale of food subject to VAT or catering service) and labour charges plus a service charge (whether these attract service tax and how taxable value is computed). Also queried is whether the contractor requires separate VAT and service tax registrations or can use the client's registrations, which depends on who is the taxable supplier and on registration rules given the contractual/payment arrangements.