service tax vs VAT
I always thought that VAT was a replacement of service tax, but today at a restaurant I noticed that the bill had service charge + VAT for food + VAT for beverages +service tax. Can anybody shed some light on this? Do we have to pay both VAT and service tax. more
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Almost all restaurants are adding service charges on the food bill. That means we should not be paying additional tip in that case. Thanks. R Tandon more
Feb 16
To clarify the matter, it is Service Charge not the Service Tax. It is a charge devised by the restaurants for the service rendered and as stated above, not mandated by the Government. This is generally 10% in liu of the Tip you may be paying. Not all Eateries include this e.g. 5star Hotels. As a rule, if Service charge is already levied, no tips should be paid. Therefore look carefully at the Bill. more
Feb 16
Vat is taxed on d full amount of the bill while service tax is charged on d service provided by d restaurant. It is also made compulsory by d government. Now restaurant are also charging service charge extra . Thats 10% extra on bill more
Feb 16
VAT is in place of Sales Tax on Govt. account. Service Tax is for the services rendered by Hotels etc in lieu of tips to waiters/ other employees as allowed by Govt. more
Feb 16
