GST on Cess???

soul_rage SG

I noticed something the other day when I was eating at a restaurant

Definition of Cess:
Cess is a tax of 1% levied on all cessable items sold by tourist hotels, tourist food establishments and tourist public houses.

I noted the other day that this hotel restaurant I dined in charged the following:

10% service charge on F&B => A
1% Cess on A => B
GST on B (???)

GST is Goods and Services Tax. Why is GST being levied on the 1% Cess as well? Doesn't sound right.

^tamago^ SG

http://www.mof.gov.sg/budget_2007/budget_speech/subsection17.1.html

thought cess is already abolished? Mad

anyway there is 7% GST on 10% service charge.

soul_rage SG

you know the date for removal?

am wondering if any restaurants are profiteering from this.

^tamago^ SG

1st july.

http://www.iras.gov.sg/ESVPortal/others/cess/ed8b01e3-1dcf-4d87-84f9-2c3bcdb19052,frameless.asp

soul_rage SG

Thanks will be on the lookout for any restaurants that still charge this.

But at the end of the day, I think this benefits tourists more than us.

^tamago^ SG

any updates….......?

ditzy SG

Marche still charges CESS. This is how my bill went:

Food 70.10
Beverage 6.00
1% CESS 0.76
5% GST 3.84
Total Paid 80.70
Cash 100.00
Change Due 19.30

Does that answer your question? Laughing

zaxis SG

if this after 1 July
why 5 % GST?
you still stand on advantage 1%

^tamago^ SG

Indeed, 7% GST = no cess.