Vat on service charge

This query is : Resolved 

30 December 2011 hi,

can someone tell me whether vat is levied on service charge also? i went to Pizza Hut and its billing structure was such that it took service charge @ 10% on the value of goods we consumed and then charged 12.5% vat on the entire amount, i.e. on value of goods consumed and the service charge. Was the billing structure right? and if yes, won't it amount to double levy? because on service charge they have taken vat, and they will pay service tax also on the same.

Again they charged 2.5% extra vat on the whole amount giving reason that the vat rate applicable for international food chain is 15%. is that so? i mean if it is operating in Gujrat, (My residence) are the vat rates applicable in the state are not applicable to them?

in and around they charged about 24% extra.

please clarify.


05 July 2013 resolved............!



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