Vat

Hi Sushant

VAT registration is voluntarily in case turnover does not exceed the specified limit because the dealer can claim the VAT  paid on purchases  as input credit  if you are a dealer then it is benificial you to get register and claim the vat paid on purchase.

hi,

can someone tell me whether vat is levied on service charge also? i went to Pizza Hut and its billing structure was such that it took service charge @ 10% on the value of goods we consumed and then charged 12.5% vat on the entire amount, i.e. on value of goods consumed and the service charge. Was the billing structure right? and if yes, won't it amount to double levy? because on service charge they have taken vat, and they will pay service tax also on the same.

Again they charged 2.5% extra vat on the whole amount giving reason that the vat rate applicable for international food chain is 15%. is that so? i mean if it is operating in Gujrat, (My residence) are the vat rates applicable in the state are not applicable to them?

in and around they charged about 24% extra.

please clarify.

Priti..service charges are not service tax.those are charges collected..to pay off for the serices of the people who work there...that is not a  tax..

Bhumika, in my aquestion i did not ask whether service charge is a tax or not. please read carefully. i know service charge is not a tax.

thank you.