Catering halls and tax on Gratuity
Re: Catering halls and tax on Gratuity
They tax the serice charge not gratuity so they can get away with it.
Re: Catering halls and tax on Gratuity
If a catering hall is charging a service charge then they must charge sales tax. If it a gratuity being passed on directly to the employees i believe they are not supposed to charge tax. There have been several threads regarding this. You may want to search and see what comes up.
Re: Catering halls and tax on Gratuity
They can tax service charge, they cannot tax gratuity. It's the law.
Re: Catering halls and tax on Gratuity
Ya, that doesn't sound right... Gratuity should not be taxed
Re: Catering halls and tax on Gratuity
Service charges must be taxed, they usually go to the hall's salaries- look on you contract and see the wording- if it literally says: gratuity is ___% and then tax is added, that is not legal