20 January 2014
domino's pizzas charging service tax ...that's legally because of ac hotels/restaurants... but why they also charging "VAT" also??? ON what basis they charge???
There are two aspects to the business of a restaurant. VAT is a state subject and the rates vary from state to state in India. Service Tax is a Central Subject and is levied by the Union Government and is applicable at the same rate all over India.
The restaurant sells the food items served and this is a sale of goods or commodities. On the value of such sale of goods or commodities state VAT is applicable - in your problem @4%.
With effect from 01.04.2012, any air conditioned restaurant is rendering taxable service and is liable to service tax under the head 'Restaurant Services." Service tax is however leviable @ 12.36% on 40% of the bill since there is an abatement of 60% for "Restaurant Service
20 January 2014
thanks...sir... but im from gujarat & they will charge..vat @ 15% in bill... & if we consider it as good as per your answer... thenwhy neo pizzas is not charging "vat" also??
20 January 2014
neo pizza is a business like dominoz pizza that gives franchisee on this name...they make pizzas...even pizza base also...& sale it... neo pizza business is same as dominoz pizzas... but dominoz pizza doing business on international stage... while the small business like neo is indian franchisee business...... both one make the pizza by self... so why dominoz only charging vat @ 15%? please answer this...
CAclubindia
