ST Liability in case of outdoor category

[NANDKUMAR SAGWEKAR]

Dear Sir ,

We are manufacturer of Chemicals having 500 employees .As per factories Act we have to

provide the food , tea to our employees. Employees has formed a Co-operative Society .

This society runs a Canteen at Factory premises and raising the bill on monthly basis.

Wheather Society is liable to pay service tax. Monthly billing is Rs. 6 lakhs 

[Snehal Kulkarni]

Please note :

"outdoor caterer" means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services.

If your factory have provided the space for your catering agency by way of tenacy or otherwise, then the agency, according to us, is liable to pay the Service Tax

The service Tax so paid is eligible for availing the Cenvat Credit as Input Service.

If the Agency is not availing the Cenvat Credit on the inputs, then 50% abatment on the gross value can be claimed.

 

[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%.

Cenvat credit can be taken for any input service

AI Summary

Outdoor catering liability: service tax applies where catering is at recipient provided premises; abatement and Cenvat rules determine tax base. An entity providing catering at premises other than its own, including premises provided by the recipient, is an outdoor caterer and is liable to service tax. If the agency does not avail Cenvat on inputs, a 50% abatement on the gross value is available and tax is chargeable on the balance; if Cenvat is availed, the service tax paid is eligible as Cenvat Credit for input services.