About Service Tax..... how the restaurants loot our money ...
"service tax" has been mis-used and charged to the customers like you and me.
an example.
Food and Beverage = Rs. 1000.00
Service Charges @ 10% = Rs.100.00 (10% on the Food and beverage amount)
Service Tax @ 4.94% = Rs. 54.34 (4.94% 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 said example.
Service Tax should be charged only on the Service Charges amount i.e Rs.100 and not on the entire amount (1000+100).
In this example, the customer should be charged only Rs 4.94, whereas he has been charged Rs. 49.00 extra.
Where does this money go? Only the restaurant owner and the chartered accountants who work for them know.
Response from some big restaurants is more concerning. Either they say: Sir we cannot change the format of the bill - so , we will recalculate and tell you the revised amount. You may pay only that.
Sir, you do not need to pay the Service Tax amount itself.
Every bill must carry the TIN number and Service Tax Number, if they charge it. So, why not service Tax as well if it is not available in the receipt that they provide.
This is clearly fleecing the customers and we must fight it back. First step can be posting as many bills like this on the local circle. more
an example.
Food and Beverage = Rs. 1000.00
Service Charges @ 10% = Rs.100.00 (10% on the Food and beverage amount)
Service Tax @ 4.94% = Rs. 54.34 (4.94% 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 said example.
Service Tax should be charged only on the Service Charges amount i.e Rs.100 and not on the entire amount (1000+100).
In this example, the customer should be charged only Rs 4.94, whereas he has been charged Rs. 49.00 extra.
Where does this money go? Only the restaurant owner and the chartered accountants who work for them know.
Response from some big restaurants is more concerning. Either they say: Sir we cannot change the format of the bill - so , we will recalculate and tell you the revised amount. You may pay only that.
Sir, you do not need to pay the Service Tax amount itself.
Every bill must carry the TIN number and Service Tax Number, if they charge it. So, why not service Tax as well if it is not available in the receipt that they provide.
This is clearly fleecing the customers and we must fight it back. First step can be posting as many bills like this on the local circle. more
Viewed by 23
Why go to a restaurant ? You pay 10 times for the food + it is excessive calories (than same food cooked at home) + you dont know the ingredients, which were most likely rotten & cheap which you will NEVER use at home + unhygienic kitchen & workers handling that food !!!! And quite likely you will end up with loose motions for which you will go to the doctor and spend money on him, the battery of tests (most often unnecessary) that he will order, and the meds (most likely fake) that you will buy !!!! more
Sep 25
