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Restaurant Bill charges- correct?

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  • Restaurant Bill charges- correct?

    Has anyone notice that the way
    Total cost is calculated?

    Takes an example of a particular
    Famous restaurant:
    Food - $100
    Service charge 10% - $110
    GST 7% - $110 x 1.07 = $117.7
    Total cost - $117.7

    Shouldn't they calculate
    $100 x 1.17 = $117?

  • #2
    From what I gathered from IRAS website:

    The service charge is subject to GST as it is part of the price payable for the goods and services provided. Therefore, the GST chargeable should be calculated based on the total price payable (inclusive of service charge).

    Example:


    Food & Beverage $100.00
    10% Service Charge $ 10.00
    Sub-Total $110.00
    7% GST ( on $110.00) $ 7.70
    Total Price With GST $117.70

    Comment


    • #3
      Yes we are all aware of this but is the
      Calculation correct ??

      Should it be like this:
      $100 x 1.17 = $117 only (and not
      $117.7)

      Comment


      • #4
        Did you see the example I've included in the earlier post? That example is from IRAS. So based on IRAS's calculation example, your calculation method is wrong.

        Comment


        • #5
          Ok Ok

          Ty for solving my query.

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