Service tax on event management including catering

[Dilpreet Kalsi]

Dear Sir,

My bill to the client for conduction event is 1000000. I provided many services including catering. Catering bill is around 600000. Now my confusion is this that  how much is the service tax to be charged ????. As per client they say it will be on 70 percent of total bill as catering is included. For catering i hired a caterer who charged me service tax on 60 percent of the amount and rest he charged me VAT.

So solve this problem with your expertise.

AI Summary

Event Manager Must Apply 12.36% Service Tax on Full Amount Despite Catering Taxation Under Rule 2C An event manager sought advice on calculating service tax for an event bill totaling 1,000,000, which included 600,000 for catering. The client suggested taxing 70% of the total bill due to the catering component. A caterer had already charged service tax on 60% of their bill, with the remainder subject to VAT. An expert clarified that while the caterer correctly applied service tax under Rule 2C, the event manager's service should be taxed at the full rate of 12.36% on the entire amount, as the primary service is event management, which is taxed differently.