Service Tax was included in home delivery is it legal

959 votes

Karim can not charge service tax in this issue because they have not provided any services to you so you can file a consumer case within 2 years since the date of bill any also file an appropriate applications and complaint before the tax department/ authorities in this regard

Advocate Harsh Kumar Gautam LawRato

546 votes

Hi,
In present days you are required to pay service tax and but you need to confirm from that food restaurant that what amount of tax they have charged and what amount is actually desired to be charged. A for better decision meet in person and discuss the things.

Advocate Ganesh Singh LawRato

695 votes

Sir the service tax is not supposed to be levied on the food delivered as the you have not availed any services from the restaurant. Service tax is only chargeable on the services provided by the restaurant, It is for the ambiance provided by the restaurant - decor, seating arrangements, background music, service provided by the waiters and staff of the hotel, such as setting the table, serving the food, clearing the table, etc.
The restaurant cannot charge service tax on the amount of the food that is delivered and for the same you may issue them a notice as a consumer. The time limit for initiating a consumer complaint is 2 years. It is not expensive as there is no court fee chargeable on complaints for compensations upto 1 lacs.
However, service tax is for the government and therefore, whatever service tax is being charged, the restaurant has the liability to remit the same to the tax authorities. If this is done and proved then the restaurant is not liable to remit any amount to the consumer. However, the restaurants in many case do not remit the amount of the tax to the tax authorities and keep the excess with themselves.
For the same you can even write a letter to the tax authorities explaining them the situation and set the things right for the restaurant and others included.
This is an issue that will not give you a lot of compensation but pursuing the same will be very helpful for the other consumers and help to stop the black marketing being done in the country by the restaurants as the consumers are not interested.

Advocate Aditya Gupta LawRato