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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- Taxation on LTCG for property sold after 24JUL2024
- GST ON DAMAGED GOODS
- Tax liability on income of freelancer
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
