Service Tax on Canteen Bills

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DOMAIN NAME IS ALSO A TRADE MARK - Article Cenvat Credit - Penalty - Input services received prior to 10.09.2004 - Scope of Rule 15 of CCR - Maximum penalty imposed equal to Rs. 2000/- - Tri Excess stock of stock found during search and seizure - redemption fine reduced from Rs.3 lakhs to Rs.1 lakh. - No personal penalty on partners and employees - Tri Sponsorship of cricket match - T-20 matches under the IPL banner - sports event - The appellant is immune to levy and collection of service tax under Section 65(105)(zzzn) of the Finance Act, 1994. - Tri Commercial training or coaching service - ICFAI - demand confirmed in view of Explanation added by the Finance Act, 2010 to Section 65(105)(zzc) of the Finance Act, 1994 with retrospective effect from 01/07/2003. - Tri Mining services / activities - composite contract - prima facie liable to service tax only from 1-6-2007 - Tri Claim of Duty drawback on goods and packing material perpetually - the petitioners cannot be stated to have exported a composite article. What the petitioners exported was the talcum powder simpliciter, of course in packed condition. - HC Expenditure owing to distribution of gifts to members/staff - expenditure allowed - Tri Deduction u/s 158BB(C)(1) - search - assessee did not maintain any books of accounts - not entitled to seek deduction - Tri Transfer - Building development agreement - The condition laid down u/s. 53A of Transfer of Property Act was not satisfied thus it cannot be said that there was a transfer u/s. 2(47)(v) - Tri Reopening of assessment - accommodation entries - nothing concrete was brought on record to substantiate that the assessee received any entry or made payment for accommodation entry - no addition - Tri Estimation of income of SJMI - PE - Procedure adopted by AO is not correct as there should be separate proceedings for two separate companies established in different countries. - Tri TP - where the lending of money was in foreign currency to its AE the domestic prime lending rate would have no applicability and the interbank rate fixed should be taken as benchmark - Tri Scrutiny / regular assessment - Validity of notice u/s.143(2) - year of selection was wrong and the notice served on assessee was issued prior to the actual approval by the JCIT - Notice bad in law - Tri Classification of the product Sugar Cone placed in Aluminium foil cone - sugar cone placed in the aluminium cone is properly classifiable under Chapter 19, as claimed by the appellant. - Tri Penalty - When the assessing authority, in its discretion has held that no penalty is leviable, by virtue of Section 80 of the Act, the revisionary authority cannot invoke its jurisdiction and impose penalty for the first time. - Tri Refund - Levy of Cess on import of coking and non-coking coal - The petitioners shall be entitled to refund of such duty paid only within three years immediately preceding the date of filing of the petition - HC Clandestine removal - allegation cannot be merely on the basis of presumptions and assumptions. Suspicion however grave cannot replace the proof - decided in favor of assessee by majority decision - Tri Swapping premium - Disallowance u/s 36(1)(viii) - swapping premium is nothing but discounted interest and had originated in the long term finance initially advance - deduction allowed - Tri

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Service Tax on Canteen Bills

Issue Id: - 3170
Dated: -13-07-2011
By:- Prakash Patil

Service Tax on Canteen Bills

Service Tax

Dear Sir / Madam,

We have canteen with subsidies food in our company. It is owned by third-party. They raise monthly bill on company. One is for subsidies food and another is for coupons issued to employees.

He raise bill for subsidies foods with abetment of 50% as per sub clause zzt of Section 65. Company pays bill with Service Tax and avail credit. In the second case, he raise the bill for coupons issued to employees including Service Tax. Company pays him with ST and do not avail credit.

Since it is pure reimbursement of bill to contractor and company is recovering the coupon charges from its employees's salary.

How can he raise the service Tax?

Post Reply

Dated: - 13-07-2011
By: - pradeep khatri

Since your case does not fall under the category of 'Pure Agent, therefore, you are being charged for Coupan issued by Contractor. Kindly aslo refer Sodexo case in this regard where Hon'ble Tribunal has held that it is taxable service.

Dated: - 14-07-2011
By: - ANAND SHEMBEKAR

Dear Mr. Prakash Patil

The reply given earlier by Mr. Khatri is correct. Further we like to add that w.e.f. 01/04/2011 there are changes in cenvat credit rules , if the services avail which are wholly consumed

by the employees like staff bus,canteen etc , eligibility of cenvat credit to be checked once again , I as per my view w.e.f. 01/04/2011 , you are not eligible to take cenvat credit on outdoor caterer services in this factory canteen case.

Thanks

A M HEMBEKAR

9421187122

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