Why Should You Always Recheck Your Bill?

Like all normal people, we believe in the food chains and restaurants that whatever they charge is always genuine. But this is not the case we have seen a large increase in the frauds on the bill that is being generated by them.





So, sharing a piece of knowledge with all of you that please whenever you see your bills, take out one minute to calculate these taxes:

Service Tax -

It is the tax levied by the government on the services rendered by restaurants. Service tax is same in all states. The service tax rate has been hiked from 12.36% to 14.5%  The restaurant must be air-conditioned for the service tax. The problem here is that most of the customers are taxed at the full bill and not on the 40% of the bill as directed. To make things simple, service tax should be levied on 40% of the total bill. Hence whenever you see service tax on the total bill exceeding about 5.8%, you can question it.

Service Charge -

These are the charges that are levied by the restaurant for the services rendered to the customer. This portion of the bill goes to the restaurant. The establishments are free to charge any amount as service charges as there are no guidelines provided by the tax authority. The charge varies from 5% to 10%. This amount is equivalent to the tips that people usually give to waiters. The charges are supposed to be shared among the staff. In this services like serving food, deliveries and etc is included but not on take away!!

VAT -

The rates can be as low as 5% and as high as 20% depending upon the states. Moreover, VAT for food items and drink are different. Many restaurants might club food items and drink and charge a flat rate on the total bill. In such cases, it is good to ask for separate bills for food and drinks. This should clearly show the different VAT for both the items.



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