Out door catering Services

[Guest]

Sir,

Our Company has given a contract to maintain an Executive Guest House at our premises. The contractor provides food to the guests who reside in guest House and claim the amount by producing a signed copy by the Guest ( stating the number of meals, Tea, Break Fast etc... provided) .Whether Service Charge can be charged under the category of Out door catering Service?

AI Summary

Service Tax Applies to Executive Guest House Meals, Classified as Declared Service Under Section 66(E)(i) of Finance Act A company inquired about the applicability of service tax on a contract for maintaining an Executive Guest House, where a contractor provides meals to guests. The question was whether this service falls under the category of outdoor catering services. An expert clarified that it is considered a declared service under Section 66(E)(i) of the Finance Act, requiring the contractor to collect and deposit service tax with the government. Additionally, 60% of the service is taxable, but the service provider cannot claim credit on certain inputs. Other participants agreed with this interpretation.