Canteens in factories with AC exempt from service tax per Notification No. 25/2012, clarified by No. 14/2013-ST

Services related to serving food or beverages by a canteen in a factory are exempt from service tax as per Notification No. 25/2012, effective from October 22, 2013. This exemption applies to factories under the Factories Act, 1948, with air-conditioning or central air-heating facilities at any time of the year. The exemption includes services by external caterers serving food in the factory's air-conditioned restaurant, as clarified by Notification No. 14/2013-ST. The provision aims to provide tax relief to factories serving meals to employees in air-conditioned environments.

---

---

---