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. 25/2012 dated 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

Canteen service exemption: factory canteens with air conditioning serving employees may be exempt from service tax.
The notification exempts services in relation to serving food or beverages by a canteen maintained in a factory that has air conditioning or central air heating at any time during the year. The exemption applies where the factory is covered by the Factories Act; practitioners disagree on whether the canteen must be mandated under that Act, but several responses state the exemption applies whether the canteen is operated in house or outsourced, subject to verifying whether the canteen is maintained pursuant to the Factories Act.