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This query is : Resolved

Rakesh Singh (Querist)

04 March 2010 I have been doing restaurant audit which is a franchise of some other restaurant which is situated in mumbai.. now they are getting a commission @ 6% comn on sales.. They are also charging 4% CST on Commission & 10.3% Service charges on d total of two..

Now is it correct to charge 4% CST on commission amount as they are saying it is in their circular that for all other franchise they shall charge CST..

Please reply soon..

Kishanlal Paliwal

Kishanlal Paliwal (Expert)

04 March 2010 Restaurant business covered under service category, it is selling of service, charging CST is not correct.

The scnario may differ if the restaurant, quantify the sale and service in the bill very spacifically.

Regards
K.L.Paliwal

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