Ser­vice Charge Is Not Manda­tory

Consumer Voice - - Service Charge In Restaurants -

In 2014, the fi­nance min­istry had clar­i­fied that the ‘ser­vice charges’ that some restau­rants levied on cus­tomers did not come to the govern­ment cof­fers. “Some restau­rants/ho­tels/eater­ies be­sides charg­ing for the food and bev­er­ages are also charg­ing ‘ ser­vice charges’ in their bills. The pro­ceeds of the ‘ser­vice charges’ are re­tained by the restau­rants/ho­tels/eater­ies,’ the fi­nance min­istry had said in a note. Some con­sumers have a ‘mis­ap­pre­hen­sion’ that th­ese ‘ser­vice charges’ are be­ing col­lected by the restau­rant on be­half of the govern­ment as tax, which how­ever is not the case.

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