Dear Sir,
Let me know whether service tax is payable by the outdoor caterer supply and serving food directly to the employees in the factory canteen maintained by the factory.
Service Tax exemption Notification No. 14/2013-ST dated 22.10.2013 after entry inserted namely “19A” is exempted from payment of Service Tax for serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948). The outdoor caterer supplying and serving food directly to the employees in the factory canteen maintained by the factory and charges cost of food and services on contractual basis. Whether Service Tax is liable to pay by the outdoor caterer. The Central Excise & Service Tax deptt. is asking to pay service tax to outdoor caterer for the above.
Regards,
S.M.Nausherawan
Sr.Manager (Indirect Taxes)