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?

[KASTURI SETHI]

It is covered under Section 66(E)(i) of the Finance Act. It is declared service. Contractor will have to collect service tax from the company and deposit with the Central Govt. 60% is service portion under Notification No.24/12-ST. The provider of catering service cannot take credit on inputs falling under Chapter 1 to 22 of Central Excise Tariff Act.

[Himansu Sekhar]

I agree with the views of kasturi sir

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of the experts.

AI Summary

Out door catering service classified as declared service, requiring contractor to collect and remit service tax with restricted input credit. The supply of food by a contractor at an executive guest house is a declared outdoor catering service; the contractor must collect and remit service tax to the Central Government, valuation treats a specified portion of the composite charge as the taxable service component under the applicable notification, and the provider is barred from claiming input credit on inputs covered by the initial chapters of the central excise tariff.