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Charging VAT on Service Charge


12-Aug-2023 (In Tax Law)
We had Beer at one bar in Delhi which was mentioned 815 Rs on Menu They charged Beer: 815 Rs Service Charge (10%) : 81.5 Rs Total: 896.5 and they charge 20% VAT on both the particular 179.30 Rs. same thing they have done with the food also. They charge 5%GST on service tax on the Service Charge of food bill and 20% VAT on Alcohol. Are they taking this money illegally or legally? I want to complain about this where should I complain. Can I get any compensation?
Answers (1)

Answer #1
699 votes
Your query is not very clear so I would like to see the bill and then determine what kind of taxes they have charged against your food and alcohol. As per the issue of service charge it Is not a compulsory charge that is to be paid by the customer service charge is an optional one. If customer wants to waive it off the restaurant is bound to waive it. You can definitely approach the consumer forum to get relief if any wrong taxes has been charged.

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