VAT on complimentary breakfast

Dheeraj Aggarwal (Querist) 11 December 2008 This query is : Resolved
There is a practice adopted by hotels to give complimentary breakfast to its guests. Sale of food falls under VAT. However, on hotel bill, no VAT is payable. Can VAT authorities levy VAT on notional value of breakfast included in room tariff?

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anandhan (Expert) 11 December 2008
1. VAT is not payable on complimentary or free food given to guests(complimentary should be mentioned in the bill).
2.VAT authorities cannot levy notional in the above case.
3.VAT can be levied when the bill mentions room tariff is inclusive food.

rajesh garg (Expert) 30 January 2009
room rent come under the hotel and luxary tax act hence tax shall be levied on rent as per provosion of the act but vat shall be collectable on food if comes under the vat act

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