Saurabh Bansal (Tax Consultant) 16 May 2010
Is service charge to be levied on service charge???
For example...
I went to a restaurant and they billed me as follows :
Goods 750
Service charge @ 10 % 075
Total 825
VAT @ 12.5% 103
Total 928
So is the bill correct????
Is VAT to be levied on service charge also???/
And what if the dealer pays service tax on the service charge??
then will VAT be levied on service tax also???
Saurabh Bansal (Tax Consultant) 17 May 2010
Hey...
just checked and confirmed it....
VAT will be charged on service charges also...
and if any service tax is paid then VAT will be charged on such service tax also...
Sivadas Chettur (Chartered accountant) 18 May 2010
Dear Bansal,
If you look into the definition of "turnover" of almost all state VAT laws you can note that it means " the aggregate amount for which goods are either bought or sold, supplied or distributed by a dealer". Thus this aggregate amount is wide enough to include the service tax also.
siva208@yahoo.com
Rohan S (Area Manager) 28 October 2012
Hello Mr. Bansal,
I had a same query though but also wanted to know the source of the solution.
From whom did you get the reply from, which legal department?
Do let me know the same, it would be of great help.
Thanks,
Rohan S.
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