Service tax on restaurants bill
This query is : Resolved
21 June 2015
A restaurant bill for food (excluding VAT , Service Tax,etc) amounts to Rs.1000/- (say)
& service charge is seperately shown in bill @10% on above I.e. Rs. 100/- and after that VAT is charged. Now my question is whether service tax (which is 5.26%) will be charged on Rs. 100 (I.e. Rs. 5.26/-) or on Rs. 1100 (1000 + 100). Since Service Charges are shown seperately, Service Tax should be charged on Service element only. But the restaurant bill shown Service Charges separately but charged Service Tax on total amount Rs.1100.
Kindly advise me in this regard
Regards
CA Viplov Surana
22 June 2015
Service tax levied on Rs. 1100.
Service tax is different from the service charges. It is a tax levied by the government. This is 14% percent and payable on 40 percent of your total bill, which includes food, drinks, service charge and served in an air-conditioned restaurant only.
Service tax is different from the service charges. It is a tax levied by the government. This is 14% percent and payable on 40 percent of your total bill, which includes food, drinks, service charge and served in an air-conditioned restaurant only.
22 June 2015
you have to charge service tax n rs. 1100/- @ 14% on 40% of the service tax rate
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- DIN reactivation
- Condonation . E-Verification of last year return .
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- TDS Return Q1 FY 2026-27
- Management System (IMS)
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
