We had food for Rs. 830 and soft drink for Rs. 85 totalling to Rs. 915 without any taxes.
On this we were first charged a VAT at 12.5% on entire amount of Rs 915 and then again an arbitrary VAT at 20% of Rs. 18.70 (supposedly on sof-drink)
Hence we paid a total VAT of Rs. 132.82 on a food & non-alcoholic beverage (diet coke) bill of Rs. 915.00
Effectively for a can of diet coke of Rs. 85, the VAT was charged twice at 12.5% 20%.
When I complained to the restaurant manager, I was told this is how the management has said to charge. This seemed a standard practice at the restaurant to over charge VAT on non-alcoholic & alcoholic beverages.
They are clearly fleecing consumers with VAT overcharging.
In addition, restaurant also charged service tax on service charge at 33.3%. I'm not sure if it is the correct service tax rate.
0 comments