VAT on Catering Services



This is Salim Akhtar and would like to know whether VAT should be charged on 100% Value of the Bill towards Catering Services under Orissa Value Added Tax or no VAT be charged?   However this activity is also covered under Catering Service of Service Tax Rules, 1994 and 50% abatment is availabe as per Rule. 

Kindly give your expert comment on the above situation.   

Thakns & Regards,


Yr query can be better replied by the members of CA club.. the associate website..


TAXPOINT (Director) 9829551008

My Dear Friend,


Vat & Service Tax is applied both or not this is vary from case to case.


for better understanding i am giving you a live example:-

Haldiram:- they just provide food & other items of eatable. But there always self service means they not provide any other service so they just charge VAT in his bill amount not service tax.


Pizza hut :- they provide table service also with fooding so they sharge service tax as well as VAT.


If you are provide just cataring services then VAT is not liable there beacuse it is covered specially by service tax


thanks for that wonderful info on event catering company. I wish to hear more from you soon,

Those engaged in Catering Niagara business must obtain service tax registration if their annual taxable services turnover crosses Rs. 9 lakhs in any year.




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