Applicability of service tax.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 October 2012
About Service Tax.
Its happens at many restaurants. Let me explain.
You might observe that "service tax" is misused and charged to the customers like you and me.
Let me give an example.
Food and Beverage = Rs. 1000.00
Service Charges @ 10% = Rs. 100.00 (10% on the Food and beverage amount)
Service Tax @ 4.94% = Rs. 54.34 (4.94% on F&B + Service Charges)
VAT @14.5% = Rs. 145.00
Total = Rs. 1299.34
As per the definition - "Service Tax can be charged only for the services provided to the customer".
Now, see what is happening here in the above example.
Service Tax should be charged only on the Service Charges amount i.e Rs.100 and not on the entire amount (1000+100).
In this example, the customer should be charged only Rs 4.94, whereas he has been charged Rs. 49.40 extra.
Thanks in advance, Sir.
Its happens at many restaurants. Let me explain.
You might observe that "service tax" is misused and charged to the customers like you and me.
Let me give an example.
Food and Beverage = Rs. 1000.00
Service Charges @ 10% = Rs. 100.00 (10% on the Food and beverage amount)
Service Tax @ 4.94% = Rs. 54.34 (4.94% on F&B + Service Charges)
VAT @14.5% = Rs. 145.00
Total = Rs. 1299.34
As per the definition - "Service Tax can be charged only for the services provided to the customer".
Now, see what is happening here in the above example.
Service Tax should be charged only on the Service Charges amount i.e Rs.100 and not on the entire amount (1000+100).
In this example, the customer should be charged only Rs 4.94, whereas he has been charged Rs. 49.40 extra.
Thanks in advance, Sir.
31 October 2012
No, On Hotel & Restaurent Services, Abatement @60% is Provided.
so on Whole Amount of rs. 1100*12.36%*40% is to be Charged.
Provided Condions Fulfilled to Charge Service Tax, (AC & Licence to serve Alchol)
so on Whole Amount of rs. 1100*12.36%*40% is to be Charged.
Provided Condions Fulfilled to Charge Service Tax, (AC & Licence to serve Alchol)
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