service tax for canteen supply

[Ramakrishnan Seshadri]

Dear Sir,

We are are having 3 units manufacturing automobile parts.

For the workers and staff we have engaged a catering supply company for supplying food to our workers and staff.

The canteen suppliers will prepare food at his place and bring to our factory and serve the food.

As per

'Entry No. 19Aof Exemption Notification No. 25/2012-ST dated 20.06.2012, Air Conditioned or Air-heated Canteen maintained in a Factory are exempt from Service Tax w.e.f. 22.10.2013'

Now our question is whether service tax has to be charged for supply of food.

Give us opinion that service tax will be applicable or not. If not means shall we claim refund for the same for the service tax paid during the epriod November to till date.

Regards

S.Ramakrishnan..

AI Summary

Debate on Service Tax Exemption for External Catering in Factories Under Notification No. 25/2012-ST Sparks Refund Questions A company manufacturing automobile parts inquires about the applicability of service tax on food supplied by an external catering company to its factory workers. The query references an exemption for air-conditioned or air-heated factory canteens under Notification No. 25/2012-ST. Responses suggest that factory canteens, whether air-conditioned or not, are exempt from service tax, allowing for potential refunds of taxes paid. However, there is debate on whether this exemption applies to external catering services, with some asserting it is limited to restaurants, complicating the refund eligibility.