Service tax levied by restaurants on totally food bill ?

Queries 536 views 2 replies

Hi Friends,

 

I would like to know whether Service Tax amount on Food items levied on Services charges or Total Food items.

I could not understand the above clarification.  Because I come to know that service tax is levied on service charges only.  But some hotels and Restaurants will levy service Tax on total food items.

My Query:

1)  Why should they mention Service charges if they have collected Service Tax on Total Food item

2)  And also they collect VAT on the Total Food item.

I am herewith attaching bill which I recently purchased some food items.

 

Regards

 

Sreenivasa Rao B

 

 


Attached File : 100323 1378390 service tax on food items.pdf downloaded: 165 times
Replies (2)

If the restaurant is charging service tax @ 4.944% (i.e. 12.36% of 40% deemed value of service) of the total bill amount (excluding VAT), then it is as per law. Article 366(29A) of the Constitution of India allows VAT and Service Tax, both to be levied in case of supply of food, drinks etc for human consumption. Though the restaurants charge VAT on the total Bill amount, they should charge VAT only on the 60% portion of the Bill. 

Being undivisible sale in value of service and food, both ST and VAT have been charged correctly.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details