Service tax saving tip

i also read dis article some 10 days ago........

i just want to ask just 1 question to anybody who had been to PIZZA HUT ( plzz nothing personal here) that when we order lets say pizza worth Rs.1000...in the bill service tax as well as vat is charged on the same amt. of Rs.1000......how can be vat i.e goods tax & service tax is charged on the same amt...i mean to say dat out of 1000 some amt will be towards service and some on the goods( Pizza) & wat i think is service tax shuld be levied on service part of d bill & vat on the goods part....

i just want to ask is any law acc. to which restaurant charges both above taxes on the same amt...plz reply as i m very curious to know dis funda of charging taxes....

Thanks in advance...

Originally posted by : Saurabh Gattani
	i also read dis article some 10 days ago........ i just want to ask just 1 question to anybody who had been to PIZZA HUT ( plzz nothing personal here) that when we order lets say pizza worth Rs.1000...in the bill service tax as well as vat is charged on the same amt. of Rs.1000......how can be vat i.e goods tax & service tax is charged on the same amt...i mean to say dat out of 1000 some amt will be towards service and some on the goods( Pizza) & wat i think is service tax shuld be levied on service part of d bill & vat on the goods part.... i just want to ask is any law acc. to which restaurant charges both above taxes on the same amt...plz reply as i m very curious to know dis funda of charging taxes.... Thanks in advance...

Dear Saurabh,

VAT is Chargeable At Composite Rate or @ 14.5% in Some State for Registered Dealer on Total Bill of Hotel & Restaurent.

Next is Service Tax, Only Can be Chargeable if Hotel Restaurent Have a Alcholic Liquor Serving Licence and Have Facility of AC.

Service Tax is Chargeable on 40% Portion of Total Bill Excluding VAT Amount.

First VAT need to be Charge.

and Pizza Hut Cant Take Service Tax, Since They Dont Serve Alchol.

@ aysush thx for wonderful clarification..