Members Advice/Clarification needed

[P.J.]

Share:

Facebook X (Twitter) LinkedIn WhatsApp Email Share Link

One of my Friend who is in Chennai wanted to know whether SERVICE TAX IS CHARGEABLE IN RESTAURANT BILLS ?

Here is further Information:

Let me give an example.
- - - - - - - - - - - - - - - - - - -

Food and Beverage = Rs. 1000.00

Service Charges @ 10% = Rs. 100.00

Service Tax @ 4.94% = Rs. 54.34 (on F&B + Service Charges)

VAT @14.5% = Rs. 145.00

Total = Rs. 1299.34


As per the definition - "Service Tax can be charged ONLY for the

services provided to the customer".


Now, see what is happening here in the above example.




Again VAT at 14.5 % is charged on the whole amount and the Total Bill Comes to 1299.34.

Also BILL must show TAMILNADU SALES TAX REGISTRATION NUMBER,SERVICE TAX NUMBER,If the Restaurant Charge any amount as SERVICE CHARGES AND CHARGE IN THE BILL.

Are we paying extra without our knowledge?

Also Service Charge should be
something to be left at the discretion of the customer he thinks.

THOSE MEMBERS WHO ARE CHARTERED ACCOUNTANTS/ OR in similar capacity,
Please give your clarification on this.

Thanks for your Advice.

 

[Iyyarooraan]

As a layman I would say the hotel is not supposed charge any service charges, like Rs.100/-. As per practice the Rs.1000 are liable for service tax.

 

[P.J.]

As a layman I would say the hotel is not supposed charge any service charges, like Rs.100/-. As per practice the Rs.1000 are liable for service tax.

Ayyarooraan Sir
Thanks
Many Restaurants , i was told , Charge Service Charges @ 10% of the Food Bill and
Sales Tax and other Taxes are added on the whole amount.

 

[tbs]

hi
there is no good service in any restaurants in general....then why this service charge?....in USA...if i dont like Mcdonell/pizza hut

food....i can return it immediately....even i can sue them in court....is it possible in india?.....millions of dollars against Mcdonell

or any other USA restaurants in court cases....any thing heard like this in india?...i dont think so....SO THEY CHARGE

SERVICE CHARGE WITHOUT GOOD SERVICE....just looting the people....no customer care in india....

 

[Iyyarooraan]

Everybody is acting like they are Bill Gates; would not WANT to mind the one that flies away from the wallet!

 

[Visalakshi Ramani]

I have watched my sons pay 10% of the

cost of the food served as tips voluntarily.

No wringing and fleecing the customers

by the restaurants or by the people who serve.

 

[Visalakshi Ramani]

Everybody is acting like they are Bill Gates; would not WANT to mind the one that flies away from the wallet!

In the name of social security a major portion of the hard earned money is recovered directly from the salary making the take-home-pay very less compared to the original pay due.

 

[Nacchinarkiniyan]

Flame > Knowledge Center > Different taxes paid while dining in a restaurant

 

[prasad1]

In USA the customary tips is 15% + extra for better service.
This is because the restaurant workers are paid sub minimum wages.

I do not think this practice is there in other countries. So gratuity is strictly voluntary.

 

[P.J.]

This Service charges plus Sales on it plus VAT on it happens in Chennai Restaurants!!