TaxTMI 
TaxTMI 
Is VAT applicable on contract for running a mess (providing all meals on regular basis) - catering service in Boarding School/College (it already included in negative list of services tax being an auxilliary service)?
Providing Mess Services in a Boarding School
02 Sep 2012 
2 Replies 
8011 Views Asked by
VAT applicability on boarding school mess services: registration and tax depend on sale versus service characterisation.
Whether regular provision of cooked meals by a boarding school mess constitutes a taxable supply under the KVAT Act turns on registration thresholds and the legal characterisation of the transaction as a sale of goods versus an exempt auxiliary educational service; if the catering falls outside educational or government-sponsored exemptions and is treated as a sale akin to restaurant supply, VAT liability and registration obligations under KVAT follow. (AI Summary)
Whether regular provision of cooked meals by a boarding school mess constitutes a taxable supply under the KVAT Act turns on registration thresholds and the legal characterisation of the transaction as a sale of goods versus an exempt auxiliary educational service; if the catering falls outside educational or government-sponsored exemptions and is treated as a sale akin to restaurant supply, VAT liability and registration obligations under KVAT follow. (AI Summary)