srinidhi - 1 July, 2015 | Bangalore | Analysis | tax | Others | vat | hotel

Tax rules have changed recently and that affects hotel bills. Please be aware of what you are paying after a meal, when the place is airconditioned...why just airconditioned? beats me!

From 1st june onwards the service tax is 5.6% of the total bill amount .

VAT is 14.5 % of the food bill in Karnataka..guess no other state charges so much!

So if your bill is 1000/-

then VAT is 145/-

Service Tax is 5.6% of 1000:   56/-

Your total bill needs to be 1201/-

So please be aware of what you are paying when you go out!

Also if there is a service charge in the bill, then do not pay any tip Service charge does not end up with the govt, its the hotels own policy. And bear in mind that VAT and Service Tax is calculated on food bill+service charge..

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