Wednesday, August 27, 2014

Unfair Practices in restaurant business & Hotel Business leads black money and corruption due to un- clarity in TAX system


Unfair Practices in restaurant Business & Hotel Business leads black money and corruption due to un- clarity in TAX system

Market Current needs - Reducing Taxes




Suggestion to PM of India-Removing Tax to remove black money and corruption

One INDIA, One VAT & One Service Tax   
Benchmarking Europe, Europe have no of countries but behaving like one

We talk about one India but why does VAT changes from state to state it should be common nation wise bench mark the Europe

Appeal from Central board of excise and Custom - Department of revenue
 http://www.cbec.gov.in/
& https://www.aces.gov.in/ -- aces.servicedesk@icegate.gov.in


 Clarity in product and service,


  • Service tax should not be imposed on product. It is for service
  • VAT bring in force to remove the middle people but it is misused by state government
  • What is the meaning of VAT – Value Added Tax in Food Item or restaurant Food? 
  •  Un-clarity of Service meaning in restaurant. Restaurant owner charging Service tax + VAT + Service, This is big source of Black money. Restaurant Framework needs to be establishing for Restaurant food. 

Taxes I have seen many kind of manipulation due to un-clarity in tax rules in the name of service Restaurant owner charging unnecessary charges and big source of black money.

  •  Service Tax 4.8% (in few places 4.94%) now ( 2015-  5.6%
  •  VAT- 12.5% (In Noida 14%)
  •   Surcharge 5%
  •    Education Cess
  •    S & H. Edu. Cess
  •    Service charge
  •    Tip
  •     Luxury Tax

Solution:


1. No service charge in restaurant allow
2. All prices mention in menu should include all type of taxes
3. Then taxes need to be paid by hotel or restaurant owner
4. Same kind of concept need to bring in other product and services also. means all inclusive

  Restaurant Segment frame work need to be redefine