Service Tax on Canteen Services and Staff Transportation.

[Santosh Mali]

Dear All,

We are manufacturer of Plastic Molded Parts of Motor Vehicle. Chapter heading 87089900. Our total employee including contractual are >250. Hence canteen facility to the workers is the statutory requirement under Section 46, of the Factories Act, 1956.

Hence we are availing the service tax for canteen services provided. Caterer is third party who is preparing foods at his location and serves in our premises. Also no deduction or charges applied to the employee by salary or other way.We relay on :

1.2013 (8) TMI 97 - CESTAT NEW DELHI2013 (8) TMI 97 - CESTAT NEW DELHI;

2.2016 (5) TMI 1077 - CESTAT BANGALORE

Cera Audit party objected the service tax availed against such canteen services. As per audit party Rule is amended and now Outdoor catering is now excluded in definition.

Please guide.....

Santosh S Mali.

9922402583.

AI Summary

Company Seeks Guidance on Service Tax Credits for Canteen and Staff Transportation Services Under Amended Rules A company manufacturing plastic molded parts for motor vehicles is seeking guidance on service tax credits for canteen and staff transportation services. The canteen service, a statutory requirement under the Factories Act, is provided by an external caterer. The audit party objected to the claimed tax credits due to amendments excluding outdoor catering. Respondents reference case laws supporting the credit eligibility for canteen and transportation services, emphasizing the necessity of these services for operational efficiency. The period of credit availed is noted as June 2014 to April 2016, and the importance of understanding case law applicability is highlighted.