Service tax on restaurant food bill

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sunil (Querist)
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01 November 2012 Sir,please enlighten me about the service tax levy on what part of bill,wheather VAT & service tax both is imposed on sevice charge part of invoice

MANOJ KUMAR SHARMA

MANOJ KUMAR SHARMA (Expert)
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01 November 2012 dear sunil ji in my views double taxation is not allowed in the law so if one time service tax is imposed then no need to add the vat.

Tushar Desai

Tushar Desai (Expert)
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28 March 2013 No, I do not agree with Manoj Ji. Both VAT & Service Tax are applicable in some cases.

For example,
Food Bill => 500
Service Charge => 100

Now, in above case, Service Tax is applicable on Rs.100 being charged for Serving food. and VAT is applicable on the rest.