SERVICE TAX
Service Tax is a component that goes to the Central Government, who imposes a levy on the services you enjoy. Earlier, it covered restaurants that were air-conditioned, and served alcohol, but now applies to all eating joints. In the last budget, service tax was upped from 12.56% to 14%, and most restaurants charge it on 40%of the total bill ( including service charge ). The resultant rate of service tax because of the cap of 40% works out to be 5.6%. This rise, as per hoteliers, is responsible for growing consumer resistance.
SERVICE CHARGE
Service Charge is a variable component of the invoice, and falls between 5% and 12%. This money actually is distributed among the kitchen employees and stewards.
VALUE ADDED TAX
VAT varies between states ( Maharashtra charges 12.5% ) and differs according to category of beverage and food item. For instance, it is 20% for hard liquor, 5% for wine.
CHARITY
Some eateries that tie-up with non-profits, add a nominal amount to the bill, which they then pass on to the charity. The fine print of the bill tens to mention it but most guests are unaware that they are playing Good Samaritan, and may even oversee the additional charge of the bill.
Jeni & Santo
Service Tax is a component that goes to the Central Government, who imposes a levy on the services you enjoy. Earlier, it covered restaurants that were air-conditioned, and served alcohol, but now applies to all eating joints. In the last budget, service tax was upped from 12.56% to 14%, and most restaurants charge it on 40%of the total bill ( including service charge ). The resultant rate of service tax because of the cap of 40% works out to be 5.6%. This rise, as per hoteliers, is responsible for growing consumer resistance.
Service Charge is a variable component of the invoice, and falls between 5% and 12%. This money actually is distributed among the kitchen employees and stewards.
VALUE ADDED TAX
VAT varies between states ( Maharashtra charges 12.5% ) and differs according to category of beverage and food item. For instance, it is 20% for hard liquor, 5% for wine.
CHARITY
Some eateries that tie-up with non-profits, add a nominal amount to the bill, which they then pass on to the charity. The fine print of the bill tens to mention it but most guests are unaware that they are playing Good Samaritan, and may even oversee the additional charge of the bill.
Jeni & Santo
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