Service Tax on Service Charge or SubTotal?

[Sushubh]

vat and sales tax are at state level. every state would have a different taxation structure. service tax is central so it's uniform throughout. what was the service charge in percentage?

 

[ashish]

service charge was 4 %.

 

[Sushubh]

congrats.

Eateries to pay tax on service charge imposed

 

[dextermorgan]

we are fucked i think? I guess theyll just increase the service charge to offset the tax?

 

[Sushubh]

service tax is paid by the consumer so it's not like they are losing anything.

so if you are paying 10% service charge, you would now pay 18% of that 10% over the 10%

 

[dextermorgan]

yup. thats what i was saying. they'll just increase the service charge amount. 99% of people dont know that service charge is optional in paying.

 

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[Sushubh]

it's really time government makes it mandatory for restaurants and other food outlets to show the final price on their menu. inclusive of all taxes and charges. based on this a food item costing Rs. 1000 would cost how much?

18% GST
10% Service Charge
18% GST on Service Charge

1180+100+18... 1300 ho gaya.