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 

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.