Pizza hut and dominos-vat & service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 October 2013
why does pizza hut and dominos charges both service tax 12.36% & VAT 4%?
30 October 2013
There are two aspects to the business of a restaurant. VAT is a state subject and the rates vary from state to state in India. Service Tax is a Central Subject and is levied by the Union Government and is applicable at the same rate all over India.
The restaurant sells the food items served and this is a sale of goods or commodities. On the value of such sale of goods or commodities state VAT is applicable - in your problem @4%.
With effect from 01.04.2012, any air conditioned restaurant is rendering taxable service and is liable to service tax under the head 'Restaurant Services." Service tax is however leviable @ 12.36% on 40% of the bill since there is an abatement of 60% for "Restaurant Service".
The restaurant sells the food items served and this is a sale of goods or commodities. On the value of such sale of goods or commodities state VAT is applicable - in your problem @4%.
With effect from 01.04.2012, any air conditioned restaurant is rendering taxable service and is liable to service tax under the head 'Restaurant Services." Service tax is however leviable @ 12.36% on 40% of the bill since there is an abatement of 60% for "Restaurant Service".
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Traces submitting correction statement error
- ITR-Capital Gain
- ITR-3 File/Error Found
- Rent claimed on building given on permissive possession basis
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
