Question
Questioning 5,000 girls across Delhi about the various taxes they pay at their favourite restaurants, the respondents put the VAT at 12.5% when it actually cost 14.5%. They believed the service charge is another tax imposed h the state or central government when it is actually purely imposed by the restaurant for rendering its service to you; respondents estimated service charge to be at 2.5% when it may vary from 4−10%. The Service tax was estimated to be another 2.5% when it is actually 12.36% and payable on 40% of your total bill (excluding taxes), which equals 4.96%.