performance of Canten Contractor

[MITSUI PRIME ADVANCED]

Dear Sir,

We are availing facility of Canteen in Factory premises as per provision of factory Act 1948 earlier allied exemption from service tax by Central Board of Excise and Custom.

Canteen Service Provider provide BHOJAN to all employees. and Charge CST 12.05%

fact of the issue:-

Service Provider belong from Haryana State and all Service provide to our Neemrana Plant from neemrana.

01. All Material (vegetarian) buying from Neemrana (Raja than)

pl. provide your valuable service VAT or CST would be applicable ?

Thanks and Regards

Arjun Sachdeva

[YAGAY and SUN]

Dear Arjun,

Your contractor must be registered under the provisions of HVAT Act, 2003, It is why Central Sales Tax 12.50% is being charged by him. Since all ingredients are being purchase from Neemrana (Raj), therefore ask him to get the registration with RVAT Authorities and charge Tax accordingly.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Interstate sales tax: vendor must register under local VAT when supplies are sourced locally and charge state tax accordingly.
The canteen contractor charged CST due to registration under his home-state VAT, but where ingredients are procured and supplies delivered within the plant state the contractor should obtain local VAT registration and charge state VAT rather than CST.