Canteen Service - Service Tax Exempted From 22-10-13

[SNEHAL SHAH]

CBEC exempts Services provided in relation to serving of food in canteen maintained by a Factory

The Central Government vides Notification No. 14/2013-ST dated October 22, 2013 (“the Notification”) has amended the Notification No. 25/2012dated June 20, 2012 (“the Mega Exemption Notification”).

The Notification adds Entry No. 19A in the Mega Exemption Notification which provides as under:

“Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year”

In accordance with the above, services provided in relation to serving of food or beverages by a canteen having the facility of air-conditioning or central air-heating at any time during the year maintained in a factory covered under the Factories Act, 1948 will be exempt from levy of service tax.

My Question :

As per Above ammended Notification - Service Tax exemted for Service Provided for out side canteen service provided in factory for employees ( Supply food & Services ) .

Please guide .

with Regards,

SNEHAL SHAH

AI Summary

Exemption of Service Tax for Factory Canteens Under Factories Act 1948 Sparks Debate on Applicability Criteria A discussion on a forum addresses the exemption of service tax for canteen services in factories, as per a government notification dated October 22, 2013. The notification exempts services related to serving food in factory canteens with air-conditioning or central heating under the Factories Act, 1948. Participants debate whether the exemption applies to canteens operated by external service providers or only those run by the factory itself. The consensus is that the exemption applies regardless of ownership, provided the canteen is mandated by the Factories Act. However, doubts persist about the applicability to canteens without air-conditioning or central heating.