04 February 2010
Dear Sir, Consider this example of a Food Restuarant issuing a bill for Rs. 400/- for food and service tax thereon Rs. 41.20 and service charge Rs. 50/-. Query: 1.Whether Service tax is applicable for Selling foods? 2. Whether the Restuarant Collect VAT instead of Service Tax, it is correct? 3. If service tax is applicable, It should be charged on Selling foods or in Service charge as above mentioned?