APPLICABILITY OF SERVICE TAX ON CANTEENS IN HOSPITAL

[CS RAHUL AGARWAL]

Sir / Experts,

is there any notification for the canteen run in hospitals whether or not government ? Please throw your valuable advice / opinion.

AI Summary

Service Tax on Hospital Canteens: Managed In-House vs. Outsourced, Air-Conditioning Key Factor in Tax Classification A discussion on the applicability of service tax on hospital canteens highlights two scenarios. If a hospital manages its own canteen, it may be classified under 'Restaurant Services' and subject to service tax if air-conditioning is provided. Conversely, if the canteen is outsourced, it falls under 'Outdoor Catering Services,' which are subject to service tax. Participants in the forum, including experts, generally agree with this interpretation, noting that the distinction hinges on whether the service is provided directly by the hospital or through an external contractor. Further opinions and discussions are encouraged for clarity.