Service tax on restaurant bill

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Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2015 Total amount of bill is 4128.92. Service tax charged is 4.944% i.e. 204.13 bt vat is charged at 12.5% on the amount total bill plus service tax i.e. 541.64 Can u Plz help me whether the amount of vat charged is wrong or right. I think it should be 516 instead of 541...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 March 2015 You are right it should be 516. In my view The vat should be charged on 60% of value which works out to 310.

VAT not leviable on portion which attracts service tax; NO VAT on ST portion of Restaurant bill
When Service tax leviable on 40% of the Restaurant bill , VAT not leviable on the portion which attracts service tax: An Analysis of Land mark Judgment of Uttarakhand High Court which addressed crucial issue of double taxation
We are sharing with you an important landmark judgment of the Hon’ble Uttarakhand High Court in the case of M/s Valley Hotels & Resorts vs. The Commissioner, Commercial Tax, Dehradun.
Introduction:
Recently IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL while disposing the Revision Application(Commercial Tax Revision No.02 of 2014) in case of M/s Valley Hotels & Resorts vs. The Commissioner, Commercial Tax, Dehradun [TS-129-HC2014 (UTT)-VAT] held that, where element of service has been so declared and brought under the Service Tax vide Government of India notification dated 06.06.2012, (i.e. 40% of bill amount to the customers having food or beverage in the restaurant was made liable to service tax) no Value Added Tax can be imposed thereon.

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