Home Forum Service Tax Month 7 2011 2011 (7) This
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Service Tax on Canteen Bills - Service TaxExtract 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?
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