Restaurant billing

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2013 one of restaurant given a bill.
calculation is
Rs.1000.00 foods
Rs. 150.00 vat@15%
Rs. 49.40 service tax@4.94%
Rs.1199.40 Total Bill Amt

Is above calculation right or not..?

I have confuse on ST & VAT on same thing.
kindly solve my confusion...

VISHRUT

VISHRUT (Expert)

26 April 2013 As per the new service Tax regime all AC restaurant serving food are required to charged the service tax on the services provided by them hence service tax applicable.

While as per the Sales Tax Laws foods being served is goods and hence Sales Tax is charges on the same.

So generally all restaurant charged VAT on food value and service tax on the mark up value for compliance of both the act which is legal requirement.

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)

27 April 2013 I think your billing is correct....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2013 Sir, Is it correct..?

service tax charge on 40% of services.
& vat on 60%

why vat amt calculated on 100% amt..?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

27 April 2013 It is not like works contract. Both for VAT and ST whole amount of billing is taken,unless one makes seperate billing on food charges and service charges,which is rare....mjk

CA Priti Surana

CA Priti Surana (Expert)

01 May 2013 VAT Act and Finance Act both two different and exclusive Acts. Though it amounts to double taxation, this is the law, and ofcourse very absurd.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 Means this billing is wrong....right..?

what's a perfect billing formate of restaurant billing ( service tax & VAt calculation.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

02 May 2013 Raising a bill for the amount charged and paying VAT and ST both on the same.Under vat,if not in composition scheme, input tax credit will be available......mjk