Nikhil Jalan (Consultant) (24 Points)
05 July 2012Hi,
I went to a Restaurant in Hyderabad which has air-conditioning and serves alcohol. WE had food there but didnt consume alcohol.
On our bill they levied VAT 14.5% + Ser Tax 5% + Service Charge 10% which seemed very absurd to me. Just wanted to clarify if this is OK or not.
Thanks & Regards,
Nikhil
Aarush
(Delhi)
(1566 Points)
Replied 05 July 2012
Yes, it was proposed to levy service tax on hotels and resturants vide notification 29/2011.
Restaurants charged service tax on service charges
AND
Restaurants charged vat on food
divva
(Industrial Trainee @ Ashok Leyland)
(348 Points)
Replied 05 July 2012
Service charges is renumeration for service it doesnt form part of tax.
Service tax of 5% may be charged because the person is rendering both taxable services as well as exempted services
If separate accounts are not maintained, the provider of output service shall pay an amount equal to 5% percent of value of exempted goods and exempted services; or pay an amount as determined under sub-rule (3A); or in relation to provision of exempted services; subject to the conditions specified in sub-rule (3A) ibid. (Ref. Rule 6(3 & 3A) of Cenvat Credit Rules, 2004 read with Not.No.3/2011 CE (NT) dt.1.03.2011)
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 05 July 2012
amit ahlawat
(GET)
(21 Points)
Replied 01 November 2012
hello sir i just wanted to know that service tax charged on bills in restaurants is on total ammount including service charge or only on service charge ammount
for eg
total food bill = 1000
service tax 10% = 100
what i wanted to know tht serivce tax shud be charged on 100 or on total ammount 1100
reply as soon as possible
CAclubindia
