TaxTMI 
TaxTMI 
TaxTMI 
APPLICABILITY OF SERVICE TAX ON CANTEENS IN HOSPITAL
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....PPLICABILITY OF SERVICE TAX ON CANTEENS IN HOSPITAL<br> Query (Issue) Started By: - CS RAHUL AGARWAL Dated:- 5-9-2015 Last Reply Date:- 3-11-2015 Service Tax<br>Got 5 Replies<br>Service Tax<br>Sir / Experts, is there any notification for the canteen run in hospitals whether or not government ? Please throw your valuable advice / opinion. Reply By Rajagopalan Ranganathan: The Reply: Sir, Norma....
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....lly in canteens maintained by the hospitals food will be cooked in the canteen itself. Similarly beverages are also prepared in the canteen itself. Under finance Act, 1994 only outdoor caterers are subject to service tax. since in hospital canteens food is prepared there itself no service tax can be levied on hospital canteens under the head outdoor caterers Reply By Ravikumar muthusamy: The Repl....
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....y: I think it comes under Restaurant services and so service tax willbe applicable if aircondition is provided pls confirm Reply By CS RAHUL AGARWAL: The Reply: With due respect to learned members and their valuable opinion, i would like to elaborate this issue a little extensively. There could be 2 situation. 1. Canteen service managed and provided by hospital themselves without outsourcin....
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....g. In this case, the service would be Restaurant Service.if they have extended air-conditioning in any part. restaurant service read as: (zzzzv) to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, ............................................................ So if the hospital are....
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.... providing meals/eatables to their premise to be used in generally by all person be it staffs, patients, guests, visitors etc then it should be classified as restaurant service provider. 2. The other could be the case where the canteen is provided, run, nd managed by a outsourced contractor. In this case it would be outdoor-catering service. It read as: "outdoor caterer" means a catere....
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....r 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 So here undoubtedly if the outdoor contractor is engaged by the hospital, which have let its premise/space for providing catering to the contractor caterer, it would be well & good within "Outdoor-caterin....
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....g" I hope with my limited knowledge and application of understanding, we can conclude it if acceptable by learned. Further discussion or contrary opinion highly solicited. Thanks to all :) Reply By KASTURI SETHI: The Reply: I agree with Sh.Raul Agarwal in toto. Reply By Ganeshan Kalyani: The Reply: Nicely explained by Mr. Agarwal<br> Discussion Forum - Knowledge Sharing ....