Applicability of Service tax

[OM PRAKASH]

In the case of Outdoor Caterer : Is service tax apply on :- Canteen Sale or Coupon sale Whether two agreements, one for food and one for service charges by the service receipient - is justified in law even though it is not pratically possible to separate the food cost and service element.

AI Summary

Service Tax Applicability on Outdoor Catering: Bifurcation of Contracts for Food and Service Charges Post-46th Amendment A query was raised about the applicability of service tax on outdoor catering, specifically regarding canteen or coupon sales and the legality of having separate agreements for food and service charges. The response indicated that, following the 46th amendment, it is possible to bifurcate a contract into parts for materials and services. Such bifurcation could be acceptable unless it is used to deceive the tax authorities.