| Address: | Mumbai City, Maharashtra |
Hi
I want to raise a very serious issue about how falsely the service tax are being charged. i guess this issue was raised some time back by is getting ignored by everyone ( customers, consumers and the govt ).
Everytime i go the restaurant , enjoy my food with friends and lastly at the time of paying the bill i get completely frustrated. I have been noticing that the tax is getting charged on the food and not on the service charge. having a chartered accountant sister i am being educated by her that service tax can only be levied on the service charge and not on the total food items . Whenever i raise this at the restaurant the waiter or the manger comes with a format written on the paper saying that we are asked to follow this format. which says
x veg - 500
y veg - 500
[protected][protected]---
total - 1000
service charge - 100
service tax(4.94%) - 40.94
Vat 14.5 % - 14.5
in the above example the service tax is charged on the total food item whereas it shud be charged on rs.100 which comes to only 4.94 rs and not 40.94. This is the case everywhere in each and every restaurants in mumbai. Is a permanent solution fir this ?? Are restaurants not knowing it or are they being ignorant ? Was this information helpful? | 
If there is sale of 50% on product in XYZ mall. On puchase, the mall changreas 12.5% vat cut which makes our sale: 50-12.5 = 37.5%.
Instead, they should notify the clear sale details.
Now, in malls and restaurants, hidden components are major shock.