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Vat and service tax on outdoor catering

VAT (Legacy) 6048 views 1 replies

Hello,

My client has availed the services of an outdoor caterer. The bill is based on per plate basis i.e. a combined amount of Rs. 425 is charged per person without any bifurcation of services and the food bill. The caterer has charged Vat of 5.3% on the bill amount and Service tax @ 6.18 % on the amount Inclusive of VAT . Isn't this wrong ? The Vat should have been charged on the food items separately and the Service tax on the service charges. How should I go about this ?

Replies (1)

   The VAT and ST can be charged on the whole value of bill at composiiton rates. The ST rate charged seems to be high. The VAT rate may be correct,if there are any cess or surcharge etc in your state.Pl check up.......mjk


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