Consumers forced to shell out service tax

No legal obligation to pay such charges, people clueless

Restaurants and major eateries in the city have been collecting service charges from customers, even when it has not been made mandatory. Not many people are aware that they have a choice to pay the service charges and can get it deducted from the bill. The service charges vary from 2.5 per cent on the total bill to over 10 per cent in a few restaurants.

Those aware of the rule resent paying the optional charge and do not agree when restaurants insist on the payment.

Ankit Priya, a research analyst who works for a public policy firm in the city, said he visited a prominent club in

THOSE AWARE of the rule resent paying an optional charge and do not agree when restaurants insist on the payment.

Begumpet and the waiter refused to waive the service charge. “The waiter told me that paying service charges is mandatory and it has been mentioned in the menu,” said Ankit.

Meanwhile, M. Satyanarayana Reddy, additional commissioner, CGST, Secunderabad commissionerate said that as per law, it is not binding but when forced, people cannot do anything but pay at that moment. However, they can always file a complaint with the consumer forum. “Restaurants are following unfair trade practices,” he said.

Payal Shah, an entrepreneur, said that waiters or the manager try to embarrass the customers who question the service charges.

“When we were charged over 10 per cent service charges at a popular club, I asked the management to deduct the service charges. The manager started talking to me and my friends loudly and started embarassing us, saying we cannot even pay a small amount for the services offered,” she said.

Most restaurant owners feel that collecting service charges is okay as they have to pay incentives to their waiters. Owner of a restaurant said that soon, she would be collecting a five per cent service charge from customers as she hardly had customers due to huge patronisation of online food deliveries. Incidentally, many people, aware of the rule, silently pay service charges as they do not want to start an argument with the waiter.

Few do not even check all the details of the bill and end up paying more money.

Ayush Mahapatra, who works for an MNC, said that even ice-cream parlours are collecting service charges. “I often take my team on dinners. I have noticed that some restaurants charge us extra. If we order 12 pieces of rotis they charge us for 15, thinking we do not keep a count. They also force us to pay service charge,” he said.