Tax calculation confusion?

I went to a pizza hut outelt today and here are the bill details. I want to know how service charge is calculated. I am typing here exactly what the bill looks like. Can someone please tell me how the calculations are done?

 

Sub Total 757.00

Srv Charge 75.70

SrTx4.944Inc 39.28

Total Due 833

 

How did the 39.28 value come?

Replies (5)
Is VAT included in the sub total of rs 757 ??

I'm not sure if VAT is included in the Rs. 757 sub total... Can you tell me both scenarios? What if it is, and what if it isn't?

Dear Akshay,

 

I believe I understand how this all is coming from.

 

Firstly, the restaurant has not provided any breakup of the Service and Food element. The Rs.75.7/- merely seems to be the TIP collected separately by most of the restaurants. This tip is later distributed amongst the staff.

Thus, it is merely a reverse calculation mechanism by which we may come to know the calculation, viz.

 

Service tax @ 4.944%      -              Rs.39.28/-

Thus, Net Food value     -              Rs.794/-

Total Rs.                               -              Rs.833/-

 

In this, way, you can understand that the Restaurant has not shown a separate break-up of net value.

Moreover, it even did not charge VAT on it. Not sure, why.

 

But, I am pretty sure, this is how it has been calculated.

 

Why is the Net Food value coming up to Rs. 794 when it is Rs. 757?

My friend, As I said its merely a reverse calculation from the gross amount... Meaning, they arrived first at 833 then 39 then 794 Further to show the tip value they again reverse calculated from 833. That's it... I know it doesn't seem correct, but they have done it. Same as they have not even charged VAT.

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