Applicability of Service tax - under which Head

[sunil mehta]

Dear Sir, A cook(with his team of assistants)prepares food/meal for a client for a marriage function.Client supplies all the materials needed to prepare the food.The cook only 'prepares' food/meal.He does not 'serve' the meal.He charges his client on 'lump sum'basis.The meal is prepared at the place provided by the client. Query:1)Whether the cook is liable to service -tax?If yes,then under which head? 2)Whether the cook can be liable to s.tax under Bus-Aux. services--'processing or production of food/meal for client' i.e.food prepared on job-work basis.Only labour charges ,no mamterials. Thanking You, sunil mehta

[Ravi Chopra]

The nature of services explained by you are not liable to service tax under the category of business auxilairy service as this activity is amounting to manufacture. But you must take care of outdoor catering services and indirect employment of manpower under the category of Manpower Recuritment Services.

AI Summary

Service tax applicability: meal preparation alone is not Business Auxiliary Service; consider catering or manpower recruitment. Preparing meals at a client's premises using client supplied materials and charging lump sum is not taxable under Business Auxiliary Service because it amounts to manufacture; however, outdoor catering or indirect employment/provision of personnel may instead attract service tax as outdoor catering services or Manpower Recruitment Services.