Service tax by hotels
Sameer Anukul
(Querist) 16 December 2012
This query is : Resolved
My queries to component of bill at hotel and customer's rights?
Various bill components were - Bill amount(A) + Additional Tax(1.5% of A)+ Entertainment Tax (7.5% of A)+ VAT (12.5% of A) + Service Charge (5% of A) and Service Tax (4.95% of A)
What is Additional Tax and Entertainment Tax? (No live band available)
Should not Service tax be 4.95% of Service Charge and not Bill amount?
In case Service tax has been wrongly charged, what recourse does customer have when Hotel refuses to listen at the time of bill payment?
Raj Kumar Makkad
(Expert) 16 December 2012
The service charges are leviable only on original amount of bill and additional charges in the name of taxes are illegal and a consumer complaint should be filed against such decoits.
