Service Charge Issue
Here is my understanding and question:
On a bill of Rs 1000, I am liable to pay VAT on 60% value, Service Tax on 40% value. Service Charge is optional and I can get it removed if service is bad. Otherwise Service Tax also includes a percent of Service Charge. Then there are SB cess and KK cess.
I have a bill of 5 star hotel restaurant from yesterday where VAT is charged on full amount, Service tax on full amount and then there is also excise duty of 6%, service charge of 5% and the 2 cess. This is in Noida, UP.
How can this 5 star be stopped from such fraud. This is a systemic issue I think more
On a bill of Rs 1000, I am liable to pay VAT on 60% value, Service Tax on 40% value. Service Charge is optional and I can get it removed if service is bad. Otherwise Service Tax also includes a percent of Service Charge. Then there are SB cess and KK cess.
I have a bill of 5 star hotel restaurant from yesterday where VAT is charged on full amount, Service tax on full amount and then there is also excise duty of 6%, service charge of 5% and the 2 cess. This is in Noida, UP.
How can this 5 star be stopped from such fraud. This is a systemic issue I think more
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It is the need of the hour for the government to come out with a clear policy on different taxes & charges at hotel and restaurants, who continue to loot the common man in addition to exorbitant room tariffs and prices of food items. But their greed does not end there and burden the customers by loading another 35 to 40% of the bills in the names of different taxes and charges. Our governments (central & state) always become deaf & dumb as far as the interest of the common man is concerned, who never show their miserliness in voting these self centred people into power. The government at centre should immediately come out with a clear policy keeping the citizens' interest on top and making provisions for heavy penalty for those daring to overrule the government's guidelines and instructions making it equally applicable all over the country. more
Jan 27
http://www.business-standard.com/article/pf/check-your-restaurant-bill-before-you-pay-115101800796_1.html Sorry, this is the link more
Jan 17
Found this article online. Seems to clarify some of the issues to me. Personally have not checked the bill minutely so far, but now will do in future. more
Jan 17
We have a deaf and dumb PM. There is absolutely no clarity whenever he speaks and whatever he speaks. Then comes his FM to add more confusion to the already confused issues. I don't understand why the hell these fellows are unable to make any policy decision which is crystal clear and is not ambiguous. If the policy matters are clear then there is no need to go to Consumer Courts, etc., etc. more
Jan 17
The Hotels should be made to put notice boards regarding the taxes , service charges and othe taxes and cess to be paid by the customers. The rule is not known to many and hence it should be notified prominently in every Hotel serving food. more
Jan 16
