06 September 2016
Dear Experts,
kimdly guide on the below mentioned issue..
Me and my friend went to a cafe and we had these things in our brekfast
Garlic bread---89.00
Tomato Soup--65.00
Extra Cheese--29.00
Choco Chip Delight--178
total -----------------------361.00
Discount @ 30% under a card scheme--108.00
Service tax---6.00%----21.66
Vat------------14.50%-----52.37
Net amount paid by me---327
now my ques is whether Service tax and vat chargeable after deducting discount amount or without deducting discount amount ?? As this cafe is not deducting this from the amount and charging taxes on full value. whether its practice is right or not ??
07 September 2016
Dear Deepak,
Govt tax are always paid on full value as govt does not allow any discount.
Tax has to be paid on fill value and cafe is right in charging tax on full value.
Hope your query is resolved
Kindly like if my response has helped you
07 September 2016
Service tax is charged on the consideration received or receivable from the consumer. consideration i have paid is after discount then why to charge on full value ??
07 September 2016
Dear Deepak,
As per my understanding govt always takes tax on gross value and not on net value
Each expert have there own opinion and it may differ from other expert
CAclubindia
