Service tax charged to Employee by Office Canteen

Share This Thread
  1. vinod tilwani

    vinod tilwani New Member

    If a canteen operated in office raises bill to company and company in return recovers 50% of the amount from employee and pays 50% by itself, now will company have to charge service tax to employee if it is not eligible for SSP exemption.
  2. Parul_Gupta

    Parul_Gupta Active Member

    As per my understanding - the charges for the food consumed by the employee are being paid 50-50 by both the employer as well as the employee.

    So, if the amount billed to the employer is Rs. 10,000 + Service Tax, then in my opinion - the amount to be charged in this case from the employee should be Rs. 5000 + Service Tax.
    ZED likes this.
  3. Parul_Gupta

    Parul_Gupta Active Member

    If this invoice had been directly raised to the employee, then also the service tax liability would have been there.

    Therefore, in my opinion - the company is right in recovering this amount from the employee
  4. ZED

    ZED Well-Known Member

    Slight error in reading. Fully concur with above reply
Draft saved Draft deleted