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

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.