Service tax applicabality on Industrial Canteen

[Desikan Srinivasan]

 Dear Sir,

Our factory provided canteen facility to our employees and for this we made contract with caterer. The caterer serves the food in our factory.

Further, our factory covered under the factory act and having facility of air-conditioning, but canteen area not having facility of air-conditioning.

Based above, whether we can eligible for service tax exemption as per new notification vide no.14/2013 ST dated 22-10-2013 ?

Thanks & Regards

9945520067

[Udaya Chandran]

Yes, youre exempted from Service tax.  Canteen services provided by factory is exempted even if it is air-conditioned.

AI Summary

Service tax exemption for industrial canteen services confirmed for factory-provided employee catering even if air-conditioned. A factory that provides canteen facilities to its employees through a contracted caterer is exempt from service tax under the applicable exemption notification; this exemption covers canteen services provided on factory premises to employees even if the canteen is air-conditioned.