Ser­vice Charge in Restau­rants What’s al­lowed and what’s un­eth­i­cal

Consumer Voice - - Contents -

This of­ten hap­pens in restau­rants. Each time you dine out, the bill that is given to you is gen­er­ally 25 per cent to 30 per cent more than the amount you had no­ticed on the menu. That’s be­cause the bill you end up pay­ing has sev­eral el­e­ments – in­clud­ing ser­vice tax, ser­vice charge, and value-added tax – that in­crease the amount to be paid. Although th­ese mul­ti­ple ad­di­tional charges may have both­ered most of you, due to your un­aware­ness of ap­pli­ca­ble sup­ple­men­tary charges or fear of spoil­ing the dine-out ex­pe­ri­ence, you rarely ques­tion the restau­rant.

For­mer Mem­ber, CDRF-Delhi

ser­vice tax per­sists. Peo­ple rarely un­der­stand why they have to pay pre­mium prices at places such as restau­rants, ho­tels, air­ports, and cin­ema halls. The fol­low­ing con­tent on the apex court’s judge­ments, ar­gu­ments be­fore the jury, as well as clar­i­fi­ca­tions by the govern­ment will give you a bet­ter idea about your rights and you will know when to raise the flag.

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