Service Tax on service provided by out caterer

[Achyut Kale]

Dear Sir,

We are having pharmaceutical manufacturing industry and providing the Tea/Snacks to our staff through out side agency. Whether will it comes under service tax net? Pl provide your openion.

 

Achyut Kale

 

[VIPIN GARG]

Dear Sir,

As per my understanding you are not charging anything from your staff for the tea and snacks you are providing through the outside agency, so there is no receipt for you regarding the above refreshment.

So as per Finance Act 1994, you are not under any provision of service tax net.

 

Regards,

VIPIN GARG

 

[CASeetharaman KC]

Outdoor Catering service includes all catering services provided by an outdoor caterer at premises other than his own premises and hence would be subject to service tax. There is an abatement of 50% available. Service tax would therefore be chargeable on the balance 50%.

[NANDKUMAR SAGWEKAR]

Dear Mr Achyut Kale

Here in your case outside agency is service provider and you are service receiver. So out side agency to take the registration under the category of Out door caterer if their GTO from all services exceeds Rs.9 Lakhs and they have to charges Service Tax after crossing of Rs.10 lakhs. You may take Cenvat Credit on this service utilise for the purpose of payment of duty o exciseable goods or taxable services you provide.

Thanks

ANAND M SHEMBEKAR

CELL 9421187122

AI Summary

Outdoor catering services may attract service tax with abatement; recipients can claim Cenvat Credit where applicable. Whether provision of tea and snacks through an external agency attracts service tax depends on the supplier's activity: if no consideration is received from employees there may be no taxable receipt, but catering supplied by an external provider at premises other than the caterer's own qualifies as Outdoor Catering and is taxable with an available abatement. The external agency, as service provider, must satisfy registration and tax collection obligations when turnover thresholds are met, and the employer, as recipient, may claim Cenvat Credit on the service.