IndianMascot
Core Member
Yup man. So better to eat home made foods and save money 
News Hike in Service taxes effective today; travels, mobiles and eating out to cost more
- Thread starter Technoglitch
- Start date
this is wrong. two taxes cannot b applicable.This is how it will be charged :
IndianMascot
Core Member
This is absolutely correct bro. We had discussed this earlier too in this forum and concluded same like shown above.
You can check with govt or other authentic sources.
You can check with govt or other authentic sources.
means v r paying 32% as taxes ?
IndianMascot
Core Member
Yes dost. Try next time whenever you had lunch or dinner outside. I will also try to post invoice here
bro, as i said ur example was incorrect. in india, double taxation is not allowed.
Double taxation in VAT and service tax under HC scanner
IndianMascot
Core Member
Let's forget all this and try ourselves in coming days.
double taxation is not allowed at any cost in india in any of the products or services.
32% tax ? cannot b possible.
i have been eating in hotels/rest n i was never charged above 12.36% in any of the hotels.
ok. but please google it also. please it's a request. vat n service tax is a kind of same thing only.
Technoglitch
Core Member
Finally, officials have woken up to the hotels and restaurants in the city fleecing customers in the name of Value Added Tax (VAT). The vigilance and enforcement department randomly inspected six hotels and restaurants in the city a few days ago and found to their surprise that these establishments had collected Rs 2.48 crore as excess VAT from unsuspecting customers during the previous financial year.
As per rules, VAT of 14.5% should be calculated and levied only on the value of food and beverages. However, it was found that these hotels and restaurants were levying VAT on food and beverages, service tax and service charge. While most of the hotels were passing on the excess collections to the commercial taxes department, some of them were pocketing the same, V & E sources said.
"Hotels and restaurants cannot collect VAT on service tax and service charge components. It is an unnecessary burden on the consumers. People should be vigilant and check their bills while paying the amount," Vigilance and Enforcement (V&E) director general RP Thakur told TOI. According to officials, this practice is prevalent in many hotels and restaurants in the city.
Hotels charge VAT even on service charge & tax - The Times of India
As per rules, VAT of 14.5% should be calculated and levied only on the value of food and beverages. However, it was found that these hotels and restaurants were levying VAT on food and beverages, service tax and service charge. While most of the hotels were passing on the excess collections to the commercial taxes department, some of them were pocketing the same, V & E sources said.
"Hotels and restaurants cannot collect VAT on service tax and service charge components. It is an unnecessary burden on the consumers. People should be vigilant and check their bills while paying the amount," Vigilance and Enforcement (V&E) director general RP Thakur told TOI. According to officials, this practice is prevalent in many hotels and restaurants in the city.
Hotels charge VAT even on service charge & tax - The Times of India