VAT on sale of food

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ATUL ANAND (Querist)

25 August 2008 I am running a restaurant. I am charging VAT 12.5% on sale of food. but I am not charging VAT on service charges provided by us. For example: I am suppling food of Rs.2496.00. charge VAT 12.5% on Rs.2496.00 is Rs.312.00. I am also charging 10% service charges on Rs.2496.00 is Rs.249.6 . On what amount I should charge the VAT on Rs.2496.00 or Rs.2496+249.6.

ATUL ANAND

ATUL ANAND (Querist)

25 August 2008 a

Ranjit Ahluwalia

Ranjit Ahluwalia (Expert)

26 August 2008 Better you cahrge VAT On whole amount otherwise you need to charge service Tax on Service Charges and get registered under service tax.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

18 September 2008 Please go through the definition of "Sale price" in your local VAT Act. You will find the answer there.
Normally sale price includes any sum charged for anything done by the dealer in respect of goods at the time of or before delivery of goods.

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