On 07.11.2012, I was visiting Lonavla (Maharashtra) with my family. At noon we reached the Kailash Parbat Hotel (Mumbai-Pune Road, Valvan, Lonavla-410104) for lunch. After lunch a bill (no. 7596 dated 07.11.2012) of Rs. 2020.00 was presented having breakup as follows:
Charges for food items : Rs. 1805.00
Service charge (@ 7% of above): Rs. 126.00
Service Tax (@4.95 ) : Rs. 89.00
Now here, the service tax is calculated @ 4.95% of total food charges i.e. Rs 1805 instead of service charges i.e. Rs. 126.00
It is obvious that the services tax is levied for the amount comes under ‘service charges’ and not for the sale of food items.
If we calculate the service tax for the service charge of Rs. 126.00 it comes to Rs. 6.00 instead of Rs. 89.00.
With this I was overcharged for Rs. 83 in the name of service tax.
It was brought into the notice of the staff in-charge, but he answered that it was computer generated invoice and hence he can not do anything. Even he refused to give contact details of his higher-ups who are looking after such matter.
In short, to my feelings, it is a case of cheating by the hotel in the name of ‘service tax’.