Double taxation - taxed by two entities for same services

jrodrigues (14 Points)

11 April 2012  

Need expert advice on the following:

My company had an event (Lunch Buffet) with a five star hotel in Mumbai.  The hotel charged 10% service tax plus 12.5% VAT on Food.  We had organised this event thru an agent company.  The agent company charged the above bill (inclusive of service charge and VAT) to us and again added Service charges of 10%. 

Is this acceptable?

Thanks for assistance.

Jossie