Dear Most MTC ians. Heartiest Greets.. I reproduce below a serious mail from my close friend for your information and considered comments on your experience in payment of Bills with service tak in general and Restaurant / hotel bills in particular. Unwary consumers may not know implications on this score. With best wishes and love Prof.Subramanian " About Service Tax..... how the restaurants loot your money ... Be aware > Ramanathan Hariharan updated his status: "Surprisingly after reading about > the "Service Tax", I strongly decided to share this information to everyone. > > This happened at the restaurant. Let me explain. > > We had been to several restaurants recently. I observed that "service tax" > has been mis-used and charged to the customers like you and me. > > Let me give an example. > > Food and Beverage = Rs.1000.00 > Service Charges @ 10% = Rs. 100.00 (10% on the Food and beverage amount) > Service Tax @ 4.94% = Rs. 54.34 (4.94% on F&B + Service Charges) > VAT @14.5% = Rs. 145.00 > Total = Rs. 1299.34 > > As per the definition - "Service Tax can be charged only for the services > provided to the customer". > > Now, see what is happening here in the above said example. > > Service Tax should be charged only on the Service Charges amount i.e > Rs.100 and not on the entire amount (1000+100). > > In this example, the customer should be charged only Rs 4.94, whereas he > has been charged > Rs. 49.00 extra. > > Where does this money go? Only the restaurant owner and the chartered > accountants who work for them know. > > ·So, I have started asking them the questions - and surprised to see the > reactions from the famous restaurants. Either they say: Sir we cannot > change the format of the bill - so , we will recalculate and tell you the > revised amount. You may pay only that. > > ·Sir, you do not need to pay the Service Tax amount itself. > > I now have 3 to 4 restaurant bills, for which I have paid only the service > tax - on the service charges and not on the total amount. > > Every bill must carry the TIN number and Service Tax Number, if they > charge it. So, I ask for the Service tax number if it is not available in > the receipt that they provide. > > We cannot go to any government official and ask them to get this right - > because of our system. > > Please remember - we cannot change any political leader - but we can > change ourselves. If we change ourselves - things will change. > > Please do share this with every one of your friends and known people. > > Ask for the right tax calculation and pay only the tax which is payable." |
MTC GLOBAL- Educate, Empower, Elevate
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