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Levy of vat on service charge

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(Querist)
27 March 2016 If a restaurant charged 10% service charge on the food bill, then whether we can charge vat on the service charge as there is no sale made in the service charge.
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CMA Loganathan Sekar

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CMA Loganathan Sekar (Expert)
27 March 2016 VAT cannot be charged on the Service charges..

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