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Tax payment on bills in restaurants

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 June 2011 Sir,
Yesterday i went to a restaurant and they levied both taxes V.A.T and Service tax.

The logic behind V.A.T is clear to me as they are cooking the vegetables and then serving to us. But what is the logic behind the service tax.
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Kumar Babu.G

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Kumar Babu.G (Expert)
27 June 2011 It comes under "Hotels etc.,short term accomodation provided by".
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
27 June 2011 The intention of the legislature can be read in http://taxguru.in/service-tax/budget-2011-service-tax-proposed-services.html
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