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Monday, October 28, 2013

Factory Canteen Exempted from Service Tax w.e.f. 22.10.2013

Service Tax Exemption to Factory Canteen‏
The CBEC has exempted Services provided in relation to serving of food in canteen maintained by a Factory vide Notification No. 14/2013-ST dated October 22, 2013 which inserted 19A to the Notification No. 25/2012-ST dated June 20, 2012 (Mega Exemption).

“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”.

Hence, services provided in relation to serving of food or beverages by a canteen having the facility of air-conditioning or central air-heating at any time during the year maintained in a factory covered under the Factories Act, 1948 will be exempt w.e.f. 22.10.2013.

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