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Service charge and GST shld not be calculated separately. As its 10% service charge and 7% GST of the selling price.
My answer is correct in the real world, do take a look at calculations made in a restaurant for confirmation.
Please look at the explanations in the comments of the next answers regarding the calculation of service charge and GST.
Please look at the explanations in the comments of the next answers regarding the calculation of service charge and GST.
done
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Hope you understand
Date Posted:
4 years ago
Actually the GST is charged on both the bill price and the service charge. It’s a regular method of payment at several dining places.
So for a bill of $100 before 10% service charge and 7% GST, the 10% service charge will first be billed on the final amount (amounting to $10) and then the 7% GST will be charged on this new value of $110 (amounting to $7.70) for a total of $117.70 after service charge and GST. After all, GST contains the word “service” in it. It’s a tax on goods sold and services provided (and thus, service charge is taxable).
Having said that, I would not expect a secondary 1 student to know how it works, since the majority of secondary 1 students would not have paid much attention to restaurant billing or even visited a restaurant before.
So for a bill of $100 before 10% service charge and 7% GST, the 10% service charge will first be billed on the final amount (amounting to $10) and then the 7% GST will be charged on this new value of $110 (amounting to $7.70) for a total of $117.70 after service charge and GST. After all, GST contains the word “service” in it. It’s a tax on goods sold and services provided (and thus, service charge is taxable).
Having said that, I would not expect a secondary 1 student to know how it works, since the majority of secondary 1 students would not have paid much attention to restaurant billing or even visited a restaurant before.
I see! Note taken ty :)