Service tax on services charges

This query is : Resolved 

05 October 2012 can anyone tell me whether 10% service charge charged by restaurants and hotels are also liable to service tax means whether service tax is to be calculated while including service charge amount or after excluding that amount.

05 October 2012 Yes it will be included

05 October 2012 thanks neeraj there is no option to avoid it.As this service charge is distributed to waiters at the month end.
In last year my client has not included service charge while calculating Service tax.

05 October 2012 SERVICE TAX IS APPLIABLE ON SERVICE CHARGE. YOU CAN NOT AVOID IT.


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