Factory canteens exempted from service tax
25th October, 2013
service provided in canteen maintained in a factory has been exempted from
service tax. Notification No. 14/2013-S.T. dated 22-10-2013 has been issued by CBEC to insert
entry no. 19A in the mega exemption Notification No. 25/2012-ST.
The new entry
extends benefit of exemption to services provided in relation to serving of
food or beverages by a canteen maintained in a factory covered under the
Factories Act, 1948, having the facility of air-conditioning or central
air-heating at any time during the year.
Exemption is already available to such services
provided by a restaurant,
eating joint or a mess if such establishment does not have air-conditioning or
central air-heating facility in any part of its premises. This has been
provided under entry no. 19 of the Notification No. 25/2012-S.T.