Service Tax — Services rendered by mandap keepers and outdoor caterers — Applicability — Clarificati
X X X X Extracts X X X X
X X X X Extracts X X X X
....ls, rooms etc. for social, official or business functions?; (ii) whether service tax can be levied on food or any other article for human consumption, when supplied by a hotel, keeping in view that the State Governments also charges sales tax on food and drinks vide Clause 29(A)(f) of Article 366 of the Constitution (46th Amendment) Act, 1982?; (iii) whether mere supply of food or drinks (without any other accoutrements) by a restaurant or hotel will attract service tax (under the category of services rendered by outdoor caterers)?; (iv) whether service tax is attracted in cases where premises and/or connected facilities are let out on rent to clubs and cultural organisations for the purposes of holding programmes relating to Dance, Dra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sivity which has been afforded to the person to whom it has been let out. For instance, the activity of mere reservation of seats in a restaurant shall not attract service tax. 4. It is argued that supply of food is termed as a "deemed sale" which is charged to sales tax by the State Governments and as such it is not liable to service tax. In this context it may be clarified that deeming the supply of food in a restaurant as a sale does not in any way bar the levy of service tax on the service provided by outdoor caterers which is primarily a tax on service rendered by an outdoor caterer. It is pertinent to note that the service rendered by outdoor caterers is clearly distinguishable from the "indoor" services rendered in a restaurant or ....