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Why should one pay VAT on service charge ?

Why should one pay VAT on service charge? Service charge is not a food item. As per article that was published in TOI of Hyderabad edition, that VAT should be on only food and beverages item.

http://articles.timesofindia.indiatimes.com/2013-11-07/hyderabad/43773451_1_vat-value-added-tax-service-tax

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