Partha Sarathi (Corporate Trainer) (28 Points)
25 May 2010Dear Friends,
Recently I had lunch at a reputed resturant in Hyderabad and to my surprise they have applied VAT & S. Charge together. Below is the details.
Buffet Lunch: 438.00
VAT @ 14.5%: 69.86
S.C. @ 10%: 43.80
Total: 552.00
I want to know whether any entity is allowed to charge VAT & Servcie Charge together and whether they are permitted to charge the VAT more than 4%?
Thank you,
Partha Sarathi
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 25 May 2010
VAT rate will vary by state to state and rates are based respective state VAT Act. So, they can charge 14.5% VAT on bill, becasue sold item covered under said rate in that State VAT Act.
Service charges not related to VAT.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
