Saturday, November 23

Air-Conditioned factory canteens exempted from Service Tax

As per notification dates 22'nd october 2013 , A/C Restaurant or Canteens in Factory premises serving food to workers and employees has been excluded from purview of service tax. Due to Negative List restaurant & catering services was included in taxable services, where genuine service of catering to workers at nominal price without intention of earning profit been taxed. To abolish the anamoly MoF decided to exempt the same. 

Read full notification as below.


[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY,]
Government of India
Ministry of Finance
(Department of Revenue)


Notification No. 14/2013-Service Tax
New Delhi, 22nd October, 2013

 G.S.R.____ (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994,  (32 of 1994),  the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the 20thJune, 2012, namely:-

            In the said notification, in the opening paragraph, after entry 19, the following entry shall be inserted, namely:-

“19A. Services provided in relation to serving of food or beverages by a canteen maintained  in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year.”.

[F. No. B1/13/2013-TRU]

(Akshay Joshi)
Under Secretary to the Government of India 


Note.- The principal notification was published in the Gazette of India, vide notification No.25/2012-Service Tax, dated the 20th June, 2012, vide G.S.R.467(E), dated the 20th June, 2012 and was last amended by notification No.13/2013-Service Tax, dated the 10th Sep, 2013 vide G.S.R.616(E).
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