Service tax on event management including catering

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..... Service tax on event management including catering
Query (Issue) Started By: - Dilpreet Kalsi Dated:- 28-12-2013 Last Reply Date:- 31-12-2013 Service Tax
Got 2 Replies
Service Tax
Dear Sir, My bill to the client for conduction event is 1000000. I provided many services including catering. Catering bill is around 600000. Now my confusion is this that how much is the service tax to be .....

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..... charged ????. As per client they say it will be on 70 percent of total bill as catering is included. For catering i hired a caterer who charged me service tax on 60 percent of the amount and rest he charged me VAT. So solve this problem with your expertise. Reply By Dilpreet Kalsi: The Reply: waiting for reply Reply By Rajesh Nathoo: The Reply: Dear Mr. Kalsi, Your Cateror has correctly char .....

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..... ged u Service Tax on 60 percent of billed amount . He has charged ST as per Rule 2C of Sevice Tax ( Determination of Valuation Rules ) ,2006. Your case is different , u are not a cateror , u are an event manager . Law has to be read harmoniously to solve ur problem. If remaining 4,00,000/- includes rent of premises , you can safely charge Service Tax on 70 percent of 10,00,000/- as prescribed un .....

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..... der N.T. 26/2012. However if rent of premises ( least possible) is not included , Section 66F (3) will come into picture . If various elements of service are naturally bundled in ordinary course of business, it shall be treated as provision of single service which gives such bundle its essential character . Now problem starts , ur case has become complicated . Essential Character of your Servic .....

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..... e is Event Management which will be taxed at full rate . i.e . 12.36 percent on 10,00,000/-. .
Discussion Forum - Knowledge Sharing .....

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