17/09/2016
KNOW YOUR BILL : EATING OUTSIDE
Well Indians as i believe are born foodie , we work hard and eat harder , we like to spend the proportionate part of our earning on our food ( Personal financial planning involved) and its always joy to be at a good place blended with good food and company.
but
here comes the trick , you would have wondered how a Dal Makhni of Rs 240 turns to rs 320 in bill ( No. are for illustration ).
Well Here is the simple thing.
In your Hotel Bill There are Different Components.
1) Charges of your Food
2) VAT ( Value Added Tax)
3) Service Tax
VAT is charged on the entire amount of food ordered by you.
Sr. Tax in case of AC restaurants in charged on the 40% of the amount of food ordered.
What Trick usually the Food joints deploy is SERVICE CHARGE.
It is no mandatory tax , rather its just like the tip amount given to restaurant for their good service. you can always deny for the same if you are not satisfied with the services.
In Case of home Deliveries also , please check your bill as Service tax is applicable only when it comes from an AC restaurant.
SO NEXT TIME YOU VISIT ANYWHERE JUST KEEP THESE THINGS IN MIND.
(Please feel free to write us for any other query.)
Team
FINANCE SHALA