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Double taxation - taxed by two entities for same services

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jrodrigues

21 Points Posted on 11 April 2012

Need expert advice on the following:

My company had an event (Lunch Buffet) with a five star hotel in Mumbai. The hotel charged 10% service tax plus 12.5% VAT on Food. We had organised this event thru an agent company. The agent company charged the above bill (inclusive of service charge and VAT) to us and again added Service charges of 10%.

Is this acceptable?

Thanks for assistance.

Jossie

Replies (1)

Prasad

Sr. Manager

625 Points Posted on 12 April 2012

If I get your question right you paid as following

1. Food Expenses from a Hotel and 2. Event management from an Agent.

if the above is correct then both the entities who are providing service will charge service on their respective services charges which they have received.

If my understanding is wrong probably please repharse the question.