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Calculation of service tax and vat, Service Tax

Issue Id: - 887
Dated: 25-8-2008
By:- ATUL

Calculation of service tax and vat


  • Contents

I am running a restaurant. I am charging VAT 12.5% on sale of food. but I am not charging VAT on service charges provided by us. For example: I am suppling food of Rs.2496.00. charge VAT 12.5% on Rs.2496.00 is Rs.312.00. I am also charging 10% service charges on Rs.2496.00 is Rs.249.6 . On what amount I should charge the VAT on Rs.2496.00 or Rs.2496+249.6. What is correct?

Posts / Replies

Showing Replies 1 to 3 of 3 Records

Page: 1


1 Dated: 29-8-2008
By:- t.sundaram
You have to calculate the tax on the entire amount , which includes service tax

2 Dated: 30-8-2008
By:- V Ramanujam
I am of the view that your activity would only attract VAT and not service tax. VAT should be calculated on the entire amount including service charges component charged as it would also form part of price of the food supplied.

3 Dated: 16-9-2008
By:- P Bujji Babu
Only VAT is levied @12.5%

Page: 1

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