VAT Charges

M ShivaKumar (Querist) 02 June 2009 This query is : Resolved
Hi,

Pls. specify the VAT charges on Food bills, alcohol bills at Restaurant / Hotels etc in Karnataka

Recently i have come across to quotations by different hotels which are between 24% - 33.33%.

Regards,
ShivaKumar.M

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A V Vishal (Expert) 02 June 2009
Dear Shiva Kumar,

The Rate of VAT varies as per KVAT as below, apart from these star hotels charge luxury tax, services charges etc.... because of which the rate varies as described by you in your query.

Articles of food and drinks including sweets and sweet meats but excluding those falling under items (i) to (iv)above and those falling under any of the entries in this schedule, when sold—
(a) in places other than those falling under sub-item (b) [Twelve percent]
(b) in [or by]

Three Star, Four Star and Five Star
hotels as recognised by Tourism Department, Government
of India. [Twenty percent]

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