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Hi to all
budy i received invoice from renowned Hotel & they are charging VAt @ 12.5% & Service tax @ 12.24% on same invoice & they on clarification say that one is Central subject & other one is State so that why they are doing this .
so please help whether they are right or not ?
Rgds
Vikas
hello vikas,
this is the most controversial point on service provider that with implementation of VAT regimen they have to pay VAT along with the service tax. The hotels, vehicle service centers, restaurents.etc. all are effected by this provision.
regarding your question the hotel management is right. However one point to remember is that they have to show the amount of VAt and Service tax seperatly.
bye
from shivprakash
CAclubindia
