Dear Sirs,We are having canteen with all kitchen equipments in our factory covered under IFS act. Third party (Ganesh Catering) coming to our factory canteen with all provisions and Vegetables and preparing food and providing to our staff. They will raise Invoice in their name with Number of food at agreed price.As per below Notification of Service Tax there is no explanation for third party preparation. so please clarify whether service tax applicable for Ganesh Catering Invoice or not.ThanksB. Abdul RazackSECTION 66E(I) OF THE FINANCE ACT, 1994 - DECLARED SERVICES - SERVICE PORTION IN CATERING OR RESTAURANT TRANSACTIONS - SERVICES PROVIDED BY FACTORY CANTEEN HAVING AC/CENTRAL AIR-HEATING AND MAINTAINED AS PER FACTORIES ACT, EXEMPTED VIDE AMENDMENT TO MEGA EXEMPTION NOTIFICATION NO. 14/2013-ST, DATED 22-10-2013.
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994, (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the 20th June, 2012, namely: In the said notification, in the opening paragraph, after entry 19, the following entry shall be inserted, namely: "19A. 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." Services provided by canteens not having air-conditioning or central air-heating at any time during the year, are already exempt under Entry 19 of the Notification No. 25/2012-ST. Now, services provided by canteens having air-conditioning or central air-heating at any time during the year are also exempted, if the canteen is maintained as per the Factories Act, 1948; if the said canteen is not maintained as per the Factories Act, 1948, then, the service would not be exempted and would be liable to service tax.