TAX STRUCTURE FOR HOTEL & RESTAURANT WITH EXAMPLE

                                                       

                                                  Tax Details   1St June 2016

                                                               Rooms Tariff

             Luxury Tax: -                         15.00%

             Service Tax: -                          8.40%

             swachh bharat cess:-                        0.3%

             krishi kalyan cess:-                          0.3%

                                                                Conference Hall

              Vat: -                                   12.5%

               Service Tax: -                                9.8%

               Swachh bharat cess: -                       .35%

               Krishi kalyan cess: -                         .35%

               Luxury Tax: -                                 03%

               Service Charge   : -                         10%

  

                                                                     Restaurant Bills

                Vat: -                                   12.5%

                Service Tax: -                                 5.6%

                swachh bharat cess:-                          .2%

                krishi kalyan cess:-                            .2%

                Service Charge   : -                          10%

                                               FOR Conference Hall

                       Conference Bill Amount      =        1000.00

                              Service Charge10%      =          100.00

                              Total Bill                        =         1100.00

                    Vat: -                           12.5% =            137.50

                    Service Tax: -               9.8% =            107.80

                   Luxury Tax: -                   3 %=              33.00

                   Swachh bharat cess: -   .35% =              03.85

                    Krishi kalyan cess: -    .35% =              03.85

                                Total amountPayable by customer        =                    1386.00

                                                    FOR Restaurant Bills

                            Restaurant Bill Amount       =         1000.00

                            Service Charge10%              =           100.00

                                             Total Bill               =          1100.00

                           Vat: -                           12.5% =            137.50

                           Service Tax: -               5.6% =              61.60

                           Swachh bharat cess: -   .2% =              02.20

                           Krishi kalyan cess: -      .2% =              02.20

                                         Total amountPayable by customer           =                 1303.50                                                                                                                                                                                                   

 NOTE:-
Vat: - 20% On beverages

Service charge

Service charge is collected by the restaurant for rendering its service to you. It is not a tax and is not levied by the government but purely charged by the restaurants. They are free to charge any amount as there are no guidelines. Service Charge is a Hotel, Restaurant Part.

VAT (Value Added Tax)

VAT is only applicable on food items that are prepared in the restaurant as they add value before serving it to you. So make sure that you are not charged VAT on packaged food items or water bottles. VAT rates are different for alcoholic beverages and other food items and are applicable only on your final bill. Also, rate of VAT tax differs from 5 percent to 20 percent depending upon the state you are dining in, because it is levied and controlled by each state separately.

Service Tax

Service tax is different from the service charges mentioned above - it is a tax levied by the government. Service tax amount is 14%, Swachh bharat cess: - .05% and Krishi Kalyan Cess -  .05%

But Effective Service Tax Amount Is Different

                                                                                                                 Thanks & Regards

                                                                                                               Sachin kumar mishra

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