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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details