VAT on service charges in hotels

This query is : Resolved 

28 May 2008 pl clarify on the following -
hotel tariff goes like this :
Service charges 3 % on Room Sales ;
5 % on F & B sales
VAT : 12.5 % on F & B

Restaurant bill goes like this -

Food sales : 1,000
Service charges -5% : 50
total : 1,050
K - VAT - 12.5 % : 131
Total : 1,181

Is this correct ? does service charges attract K VAT ?

please clarify

17 June 2008 definition of sale includes service in hotels, therefore K VAT is at 12.5% on that

19 September 2008 Agreed




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