Service charge @ restaurant bills .

Anindo Mukherjee (Querist) 01 November 2012 This query is : Resolved
Respected Experts,
I have been noticing very confusing bills at the time to pay @ restro but still i pay & go. But can anyone tell me why SERVICE CHARGE is being charged twice in the bill?? for example :
------
Food and Beverage = Rs. 1000.00

Service Charges @ 10% = Rs. 100.00

Service Tax @ 4.94% = Rs. 54.34 (on F&B + Service Charges)

VAT @14.5% = Rs. 145.00

Total = Rs. 1299.34
------
Is dis a right practice adopted by hotels?
PLEASE GUIDE.

REGARDS
Anindo Mukherjee

Follow Query

Report Abuse

R K JAIN (Expert) 02 November 2012
Restaurant is charging the service charges i.e Rs. 100/-. So he should charge the service tax on Rs. 100/- only which will come to Rs. 12.36 so he is charging in the bill Rs. 41.98/- extra, So you must clarify this issue with the restaurant.

Devajyoti Barman (Expert) 02 November 2012
Yes, there can not be both Service Charge and Service Tax.
Service Tax is valid but Service Charge is doubtful.

Anindo Mukherjee (Querist) 02 November 2012
Please clarify.!

R K JAIN (Expert) 03 November 2012
VAT is charged for the value of transfer of goods and service tax is charged on the services provided while transferring the goods. So the service charges of Rs. 100 is taxable under service tax and value of goods is chargeable under VAT.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now