Should restaurants include Service Charge for VAT computation ?

POSTED BY Neel Vora ON August 13, 2013 9:51 am ONE COMMENT

Should VAT include service charge also when doing calculation. I’m seeing lot of conflicting information where some places I see VAT calculated only on Sub Total (excluding service charge and sevrvice tax) and in some I see VAT calculated on SubTotal+Service Charge.

I found this link as well where SC should not be included when doing VAT calculation: http://apnaplan.com/decoding-your-restaurant-bill/

One reply on this article “Should restaurants include Service Charge for VAT computation ?”

  1. As far as I know , VAT has to be on main bill + service charge .

    Manish

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