Unreasonable tax charged by restaurant

This is a complaint against the resturent ‘Walk In The Woods’ siturated in Sec-4, Vaishali, Ghaziabad (UP). On my food bill amount they charged more than 28% of taxes (Service Charge 8%, Food VAT 14%, Beveraged VAT 14%, Service Tax 4.94%) which costed my Rs. 546 on Bill of 1920. This amount of tax seems to be very unreasonable. As per my knowleged, total service tax amounts to about 14%. Please Guide.

Sanjay Gupta
Sec-6, Vaishali, Ghaziabad, Uttar Pradesh
Email: guptasan90ster@gmail.com / 21/04/2015 / 2:56 pm

1 comment for “Unreasonable tax charged by restaurant

  1. ICF
    22/04/2015 at 11:32 am

    As per MoF Notification No. 11/2012 – Service Tax, services constitute 40% of total amount. Therefore ST should apply on 40% of the bill amount and VAT should apply on the remaining 60% of the Bill amount. However, many restaurants do not follow this and it is not know whether this notification is strictly complied to.

    Service charges are different from service tax. Service charge is something equal to the tips that you pay to the waiters; this is not a government tax.

    VAT rates vary from state to state.

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