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Need clarification for service tax, vat and service charges

This query is : Resolved 

12 September 2011 I have noticed that one of the restaurnt in Patna charges Service charges a part from service tax and VAT on their total Bill value for booking a banquet for lunch,Kindly view your points on the same, Bill details are as follow.

(conference wid spl lunch @ Rs.550.00 for 43 person)

Rs.550.00*43 = 23650.00
Servc chrg@5% = 1182.50
---------
Total 24832.50
VAT@13.5% = 3352.39
Servc TAX@6.18% = 1461.57
--------- Total 29646.46


Rgds.
Tanweer
9934361710
tanweer0710@gmail.com

19 October 2011 SERVICE CHARGE IS AN AMOUNT COLLECTED NORMALLY AS TIP TO EMPLOYEES AND IS A COMMON PRACTICE WIDELY IN THE INDUSTRY.
AND THE TAXATION STRUCTURE IS CORRECT AS FAR AS THE BANQUET BILLING IS CONCERNED. BANQUET SERCIVE COVERED UNDER CONVENTION SEVICE/ MANDAP KEEPER SERVICE


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