Is VAT and Service Tax both applicable?

Please state whether both VAT and servicetax is charged for the same item. If yes, it is mere looting, this can be taken to repective authorities. Hotels can charge VAT on food items and Service tax on Room rents.

Hotel can't charged service tax on food bills.

Yes VAT and Service Tax can be applicable in the Hotel.

if hotel is providing any service at the time of dinner or lunch like mandap keeping or catering then it can charge both vAT and service tax in the appropriate ratio

Hotels are covered under "Convention Service" or "Mandap Keeper Service"(note that since they cater at their OWN premises, outdoor catering service is not attracted).

Under the above 2 services, hotels can take an abatement(viz charge service tax on 40% of the bill value). However, many simply do not bother or care to do so.

Regarding VAT, the normal VAT rate of 12.5% is applicable on hotel food. This is over & above luxury tax etc if any applicable.

What is the Vat Rates  applicable in  Computer Software Exporting Company?

Dear Banerjee,
 

If it is a restaurant then they can only charge the VAT and no service tax.

If a mandap etc then ST and VAT can be charged on portions with no overlap as per the decision of the SC in the case of BSNL - on value of services no VAT is chargeable and on value of sale no service tax is chargeable.

hotel bsiness vat notification

Hi Experts,

Kindly let me know the VAT rates applicable to Hotels & Resturatants.

Thanks

ThiruKumaran

Hi Exparts,

I am an accountant of a Construction company. I have receive a bill towards advertisement fees for the display space for advertisement on their Hoardings for Rs 2500 plus Service tax Rs 257.52 plus Vat @ 13.5% Rs 37.23.

So kindly let me know both service tax & Vat can be charged on the above bill?

Thanks

Anandamoy Dutta

The FA 2011 has bought in a levy of ST on ac restaurants which have a license to serve liquor. However they provide an abatement and the same is not on the gross amount.

Sale of food and beverages attracrs vat. Room sale and related service attrats serviec tax and luxury tax. Liuquer servved a/c restaurant attarcts service tax and vat. 

They can not charge both taxes on same item.  It may be service charges not service tax.  Please re-check the same.

Regards,

Rajiv

Sir,

In chattisgarh sales tax act, vat is levied on a transfer of the right to use any goods including leasing thereof for any purpose, so if we are hiring machinary we have to pay vat on it. Then in this case whether we are liable to service tax also.