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 3%
Service Charge 10%

Restaurant Bills

Vat 12.5%
Service Tax 5.6%
Swachh Bharat Cess 0.20%
Krishi Kalyan Cess 0.20%
Service Charge 10%

NOTE:-
Vat: – 20% On beverages

Example How to Create Bill Invoice

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 Charat Cess: -.35% = 03.85
Krishi kalyan cess .35% = 03.85
Total amount Payable by customer = 1386.00

FOR Restaurant Bills

Restaurant Bill Amount = 1000.00
Service Charge 10%  = 100.00
Total Bill  = 1100.00
Vat 12.5%  = 137.50
Service Tax: – 5.6%  = 61.60
Swachh Charat Cess .2%  = 02.20
Krishi Kalyan Cess .2%  = 02.20
Total amount Payable by customer  = 1303.50

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 Swachh bharat cess: – .05%

Compiled by -Sachin Kumar Mishra

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One response to “Tax Structure for Hotel & Restaurant with Examples”

  1. Srinivas says:

    Thank you so much for the information with examples.

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