TaxTMI 
TaxTMI 
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
VAT , Service Tax , SB Cess on Packing charges ?
07 Dec 2015 
2 Replies 
2946 Views Asked by
Packing charges taxable: VAT and cess apply while service tax on food delivery remains legally contentious.
Packing cost forms part of the product price and is chargeable to VAT and SB cess, with vendors able to claim input tax credit on packing material to offset tax on the finished sale. Levy of Service Tax on food delivery is contentious and presently subject to appellate consideration; some sellers charge service tax on delivery to avoid revenue risk given the absence of an explicit negative or exemption listing. (AI Summary)
Packing cost forms part of the product price and is chargeable to VAT and SB cess, with vendors able to claim input tax credit on packing material to offset tax on the finished sale. Levy of Service Tax on food delivery is contentious and presently subject to appellate consideration; some sellers charge service tax on delivery to avoid revenue risk given the absence of an explicit negative or exemption listing. (AI Summary)