Service tax or vat...?

Absolutely.... Service tax is charged on the services they render  you, that is you as a customer avail their services...while Vat is charged on food and the beverages that you consume.

yes..

you are right.

but VAT has to bee applicable only when the vendor is adding some value to the goods or service,

and if that thing has already been charged as VAT through value addition in form of service as well,

then why Service Tax should be lavied on the same thing.....??

kindly clarify...

Okay lemme clarify the concept..first indeed anything adding value to the good or services attracts Vat, for instance the food you buy is raw vegetable...when you cook it brings out a new product...hence Vat is charged.

Now coming to service tax, as per the law...service tax comes under the amit of mandap keeper, so if the hotel is used for some banquet purpose such as function hall, ceremony etc..it attracts service tax for using the premises of the hotel.

However in 5 star hotel, when you have *only* your meal, you are charged VAT for the food and beverage, the other charge is the service charge and not the service tax. Service charge is not a government tax but the charges levied by the hotel and you as a customer have a discretionary right to refuse to pay the service charge.

Hope this is clear