Pradeep Jain - Chartered Accountant

Dear Sir, Suppose x is factory under a public limited company registered under factory act. The company has a canteen where he provides food to employees to their employees at concessional rate.Even employees are getting food at concession rate, they are getting lunch allowance as part of their salary. The company has enter into a contract with a outdoor cater (A Private limited Company) for supply of food by using company canteen and kitchen. The outdoor cater raise bill in the name of the company at the end of the month and charge service tax @12.36% under outdoor catering services. My Question is 1) Can the door cater get service tax exemption under NT No 13/2014 by introduction of Sr No 19A. 2) If the company (Servicer Receiver) is paying the ST then can he eligible for Service tax credit as in put service.

Respected sir, The carterer shall get exemption under entry serial no. 19A of Notification no. 25/2012-ST inserted vide Notification No. 14/2013-ST only when he follows the following conditions:- 1. The service shall be of providing food or beverages 2. The service shall be provided in a canteen maintained in a factory covered under the Factories Act, 1948. Under Factories Act, if there are 250 employees regularly employed in the factory then it is necessary to maintain a canteen in factory premises. 3. Such canteens have the facility of air conditioning or central air heating at any time during the year. If these conditions aren’t complied with then exemption shall not be available. But he can take abatement of 40% as specified in Rule 2C of Service Tax (Determination of Value) Rules, 2006. This is dispute between department and assessee. Department says that it is clearly excluded from the definition of “input service” in exclusion clause as it is used for personal use of employees. But the assessee can plead that the same is legally required to be provided, hence the credit should be allowed. {Query solved by:- Prayushi Jain}

Sir, we are a taxpayer dealing in health care services. We have been making supply on which tax was payable by us but we have not paid the same erroneously. The same has been pointed out by department recently. Please suggest whether we have to pay interest and penalty along with tax.

As per sub-section (5) and (6) of Section 73 of CGST Act, if you have made payment of tax and informed the same to the department then the department ...
Sir We are dealing in trucks. We have received an export order from foreign buyer. We wish to procure trucks from 5 different manufacturers and supply them directly to the port without receiving on our own premises. Can we do the same to take benefit of merchant export by paying tax @ 0.1%.

. Yes, as per Notification 41/2017-intergrated tax (Rate) dated October 23, 2017, benefit of notification is available only when the material moves fr ...
The agriculture produce like soyabean are taxable however, their warehousing is exempt and not chargeable to tax. How?

Under GST regime, agriculture produce means “any produce out of cultivation of plants and rearing of all life forms of animals except rearing of hor ...
Hello sir we have made export of goods however the funds have not been realized. Is there any implication in GST regarding the same?

As per rule 96B introduced with effect from 23-3-2020 provides that where any refund of IGST paid on export of goods has been received by the exporter ...
What Is the GST rate for interest and penal charges levied by Chit Fund Company in case GST on foremen commission charged is @12%?

GST rate on foremen commission is charged at the rate of 12%. Similarly, GST rate on interest and penal charges shall be @12% only. The same view was ...
Tax payer being a company, is in one state (state -1). However vehicle carrying his goods is caught in another state (state-2) where the company is not having any registration. Company paid penalty under temporary registration ID created by the officer of state-2. Now, company wants to file an appeal but don’t have any temporary registration login credentials. How to file appeal in such a case?

. In the given query, after the interception a temporary ID was created by officer of state-2. However, the login ID and password of temporary registr ...
Whether GST exemption is availed on export of service when invoice is issued in USD and GST is not charged and currency is received in INR?

Export of service is defined under section 2(6) of the IGST Act. It means supply of service when: ? The supplier of service is located in India. ...
E-way bill was generated and then after order was cancelled but E-way bill was not cancelled by both the parties on the portal. What should be done in this case and what are the consequences?

As per provisions of GST, where an e-way bill has been generated but goods are either not transported or are not transported as per the details f ...
The Taxpayer made exempted supplies but forgot to choose the same in GSTN while registering, can he be said to fail his right of exemption?

We do not claim exemption while filing registration application. It is being claimed in GSTR-3B returns. Moreover, only five major products are to ...
If a taxpayer made mistake declaring the HSN/SAC of goods and services supplied, what are the consequences?

Under GST law, one of the most important elements is the classification of goods/services for the purpose of determination of rate of tax to be l ...

Comments

Query