Service tax saving tip

3467 views 4 replies

Recently came accross interesting article which explains that Service Tax is levied on 40% of the Total Bill only and not on the Total Bill

 

Moreover, not all Restaurants charge Service Tax. Only a certain categories of Restaurants charge Service Tax and how you can avoid payment of Service Tax by carefully choosing your Restaurant

 

Refer: Computation of Service Tax in Restaurant

Replies (4)
neha.can you please share the article. would like to read it once

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..


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