VAT , Service Tax , SB Cess on Packing charges ?

[sanjeev talwar]

Food was ordered for home delivery from KFC , Dwarka , New Delhi . Packing charges were incl in the bill which was also taxed for VAT, Service tax & SB cess . Is it correct & justified as per govt tax rules ? Pls confirm .l

AI Summary

Clarification on VAT, Service Tax, and SB Cess applicability on restaurant food packing charges; Service Tax levy remains contentious. A query was raised about the applicability of VAT, Service Tax, and SB Cess on packing charges for food delivered from a restaurant in New Delhi. The response clarified that packing costs are part of the product cost and subject to VAT, Excise, Service Tax, and SB Cess. The vendor can claim VAT credit on packing materials. However, the levy of Service Tax on food delivery is contentious, as it is not explicitly covered under the Service Tax's Negative or Exemption List, prompting sellers to charge it to avoid potential revenue loss.