S.t in restaurent bill

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 January 2013 dear sir/maam
what is the A.V in case of restaurent

is it only service charge

or

food amount and service charge.

05 January 2013 Dear Sir,

The service tax is always leviable on the value of service provided and not on the value of goods.
In case of restaurant service also service tax is leviable on the value of service. However if the service charge and food cost is not seprately identifiable then there is a provision to charge service tax on 30% of the value of bill. The bill amount will include the cost of food and the cost of service. this 70% abatement is given to exclude the value of food.

CA JAYANT BOTHRA
M: 9911-550-210

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 January 2013 Thank you very much sir,

sir one more doubt please clarify it,

can the restaurent charge VAT on the FOOD amount.

06 January 2013 Hi,

Yes, they do!!

Thanks!!

16 January 2013 Yes I agree with the expert


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