Sunday, September 18, 2016

Why do restaurants in India charge both service tax and VAT on the full basic amount of the bill [COMPACTIDEA]

I don't like this and I don't find this logical, no matter what people say. Service is only a component of the total "experience" we got at the restaurant. Part of the experience was the food [the "product"] and rest was service. Then how can the full basic amount of the bill [before taxes] be entitled to both service tax and VAT? This isn't about the service charge. Either something is entirely a product or entirely a service or part product and part service. Current taxation doesn't seem correct. People are being looted by the Indian government which clearly sees this but stays quiet. And in this CCD bill, there's even some an Additional Tax charged. The basic bill got inflated by ~24% due to taxes. And the money that a person spends on buying this stuff at CCD was already taxed in the form of income tax. This 24% burden is after that 10%-30% income tax burden. Bullshit!

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