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Discussion > Service Tax > Queries >

Is VAT and Service Tax both applicable?

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Practising Cost Accountant. Core area- Central Excise. Service Tax Costing system installation including maintenance of Cost Records and Cost Audit and Management Audit mainly Revenue leakages Audit

[ Scorecard : 589]
Posted On 21 March 2009 at 20:24 Report Abuse

I have observed that one of the most famous 5 star hotel in kolkata charges both service tax and VAT on their total Bill value. Do you have any knowledge on this? is it covered under any notification if so pl inform me.

Thanks in advance,

S. Banerjee

9433050121

banerjee.sambhu @ rediffmail.com


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Ankur Agrawal
CS, CA Final

[ Scorecard : 239]
Posted On 21 March 2009 at 21:17

Originally posted by :S. Banerjee
"

I have observed that one of the most famous 5 star hotel in kolkata charges both service tax and VAT on their total Bill value. Do you have any knowledge on this? is it covered under any notification if so pl inform me.

Thanks in advance,

S. Banerjee

9433050121

banerjee.sambhu @ rediffmail.com

pls check ur mail...!!

"




S. Madhanraj
Accounts Manager

[ Scorecard : 26]
Posted On 25 March 2009 at 15:08

Please state whether both VAT and servicetax is charged for the same item. If yes, it is mere looting, this can be taken to repective authorities. Hotels can charge VAT on food items and Service tax on Room rents.




satynarayan tiwar
Professional

[ Scorecard : 61]
Posted On 26 March 2009 at 15:34

Hotel can't charged service tax on food bills.




Amit kedia
article

[ Scorecard : 200]
Posted On 26 March 2009 at 17:22

Yes VAT and Service Tax can be applicable in the Hotel.

if hotel is providing any service at the time of dinner or lunch like mandap keeping or catering then it can charge both vAT and service tax in the appropriate ratio

 




ANANDH SUNDAR
Bharti Airtel

[ Scorecard : 1623]
Posted On 26 March 2009 at 21:39

Hotels are covered under "Convention Service" or "Mandap Keeper Service"(note that since they cater at their OWN premises, outdoor catering service is not attracted).

Under the above 2 services, hotels can take an abatement(viz charge service tax on 40% of the bill value). However, many simply do not bother or care to do so.

Regarding VAT, the normal VAT rate of 12.5% is applicable on hotel food. This is over & above luxury tax etc if any applicable.



Total thanks : 1 times



Divya Karthik
S

[ Scorecard : 459]
Posted On 07 April 2009 at 10:22

What is the Vat Rates  applicable in  Computer Software Exporting Company?




Madhukar N Hiregange
Chartered Accountant

[ Scorecard : 19072]
Posted On 08 April 2009 at 10:19

Originally posted by :S. Banerjee
" I have observed that one of the most famous 5 star hotel in kolkata charges both service tax and VAT on their total Bill value. Do you have any knowledge on this? is it covered under any notification if so pl inform me.
Thanks in advance,
S. Banerjee
9433050121
banerjee.sambhu @ rediffmail.com
"

Dear Banerjee,
 

If it is a restaurant then they can only charge the VAT and no service tax.

If a mandap etc then ST and VAT can be charged on portions with no overlap as per the decision of the SC in the case of BSNL - on value of services no VAT is chargeable and on value of sale no service tax is chargeable.




akbar
accountant

[ Scorecard : 27]
Posted On 01 April 2010 at 14:33

hotel bsiness vat notification




Thiru
SR ACCOUNTS EXECUTIVE

[ Scorecard : 25]
Posted On 25 May 2010 at 17:26

Hi Experts,

 

Kindly let me know the VAT rates applicable to Hotels & Resturatants.

Thanks

ThiruKumaran



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