Sub:

Imposition of Service Tax on OUTDOORS CATERERS & PANDAL or SHAMIANA CONTRACTORS –reg.

The Trade is hereby informed that levy of Service Tax on the services rendered by Outdoor Caterers & Pandal or Shaminan Contractors will come into force from 1.8.97 (Ntf. No. 28/97-ST, dt. 25.7.97). The rate of service tax is 5% in case of both the above services. In the case of services rendered by Outdoor Caterers the person responsible for collecting the service tax shall be caterers who raises the bill for services rendered to the client. The service tax is leviable only on 50% of the taxable service in relation to services by outdoor caterers where the caterer also supply food.

In cases where the caterer is providing services in the premises of an office, factory etc. and is located within such premises, the service tax is to be paid on only 20% of the gross bill charged to the client .(Ntf. No. 30/97-ST, & 31/97-ST, dt. 25.7.97).

However catering services provided by such caterers in Educational Institutions and Medical Establishments have been fully exempted from Service Tax (Ntf. No. 32/97-ST, dt. 25.7.97). Catering Services in Railway Trains have also been exempted from Service Tax (Ntf. No. 33/97-ST, dt. 25.7.97). In the case of service provided by Pandal or Shamiana Contractors, the service tax liability shall fall on the contractors who raises the bill for services rendered to any client. Service Tax shall be computed on the gross amount charged by such contractor form the client for service rendered in relation to the setting up of pandal or shamiana including the supply of furniture, fixtures, lights and lighting fittings, floor covering and other articles used therein. In cases where the pandal contractor also provides services of catering charges, an exemption of 30% of the Service Tax chargable on the gross amount has been provided (Ntf. No. 34/97-ST, dt. 25.7.97).

The Service Tax on services rendered by pandal or shamiana contractors based in Rural areas and who are carrying their business within such area has been exempted (Ntf. No. 35/97-ST, dt. 25.7.97).

Copies of the notifications are available with Service Tax Branch of this Commissionerate.

(M.K.ZUTSHI)
COMMISSIONER
CENTRAL EXCISE-I
NEW DELHI – 110 002.