Service in restaurants

This query is : Resolved 

18 March 2015 I have read that in restaurants service tax is chargeable only on service charges and not on total food bill. Is it correct? If yes then kindly give reference to the relevant clause of the act so that I may keep the extract of the same with me and show it to the staff there. If some restaurant does not charge "service charge" in that case is any service tax is payable?

18 March 2015 Service tax payable on 40% value of food supplied in AC restaurants(assumed 40% as service). Service tax payable even if no service charge charged.

19 March 2015 How much would be the rate of Service Tax on '40% of the value of food served'?

19 March 2015 It is 12.36% on 40% of value of food served.

19 March 2015 Could you give reference of the clause no of income tax act? What is the value for non a/c restaurent?

23 July 2025 https://docs.google.com/document/d/1iwV1vNZQvAAE-y0ecs1yHLpLT_ztOmsABMA45owBY60/edit?usp=sharing


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