Service
Charge & Service Tax In Hotels .
Must Read full :- If we cant change system, at least we should change our self
Must Read full :- If we cant change system, at least we should change our self
SERVICE TAX
At Restaurants - VERY IMPORTANT !!!
Interesting. I find restaurant
bills often so confusing, ...I just give up and pay the amount shown n the
bottom line.
Perhaps we
shouldn't. Incidentally, I also resent the inclusion of Service Charges in restaurant
bills, because it assumes that I was satisfied with the service. Just a matter
of principle. Service Charge should be something I leave behind at my personal
discretion. I recently demanded that the service charge be removed as the
service was non-existent. After a short - very short! - discussion, it was
removed. About Service Tax.....
Be aware …This happened at the restaurant.
Let me
explain.
We had been
to several restaurants recently. I observed that "service tax" was
being misused in the way it was being charged to customers.
Let me give
an example.
- - - - - -
- - - - - - - - - - - - -
Food and
Beverage = Rs. 1000.00
Service
Charges @ 10% = Rs. 100.00
Service Tax
@ 4.94% = Rs. 54.34 (on F&B + Service Charges)
VAT @14.5% =
Rs. 145.00
____________________
Total = Rs.
1299.34
As per the
definition - "Service Tax can be charged ONLY for the services provided to
the customer".
Now, see what
is happening here in the above example. Service Tax should be charged only on
the Service Charge amount i.e Rs.100 ONLY, and NOT on the entire amount
(1000+100).In this example, the customer should be charged only Rs 4.94,
whereas he has been charged Rs. 49.00 extra.
Where does
this money go?
Only the
restaurant owner and the chartered accountants who work for them know. So, I
have started asking them the questions - and am surprised to see the reaction
from famous restaurants. Either they
say:
"Sir we cannot change the format of the bill - so , we will recalculate
and tell you the revised amount. You may pay only that."
OR
"Sir,
you do not need to pay the Service Tax amount itself"!!
I now have 3
to 4 restaurant bills, but for which I have paid only the service tax on the
service charge and NOT on the total amount. Every bill MUST carry the TIN
number and Service Tax Number, if they
charge it.
So . . . , I ask for the Service tax number if it is not available in the
receipt that they provide.
As we cannot
go to any government official and ask them to get this right - because of our
system.
Please
remember - we cannot change any political leader - but we can change ourselves.
If we change
ourselves - things will change. Please do share this with every one of your
friends and known people. Ask for the right tax calculation And Pay only the
tax which is supposed to be paid.
Verify every
bill and receipt that you make payment on."Please share if you think its
worth"
