tax and gratituty ?

tax and gratituty ?

While dropping off the payment today, I was looking at the amts on the contract and realized that our hall did charge tax on gratituty. I thought this wasn't allowed? Am I wrong?

Re: tax and gratituty ?

If it is a service charge then there is tax on it. But if it is really a gratuity then there shouldn't be sales tax. This is a very grey area. You should ask the hall if the gratuity is going directly to the staff or is the hall keeping it and paying the staff a salary.