VAT on Service Tax
IT seems that the Enforcement department of the Andhra Pradesh Government has found that the hotels and restaurants in Hyderabad had collected Rs. 2.48 crore as excess VAT from unsuspecting customers. It is said that VAT of 14.5 percent is to be paid only on the Food and Beverages Charges while the restaurants were collecting VAT on F&B charges + Service Tax + service charges. This may be a practice followed in other cities too. Check your bill before you pay.