Government says service charges in restaurants optional
Posted on: 03/Jan/2017 10:48:35 AM
Service tax is collected along with the rate and tax from the customers who come to eat in the restaurants. The service tax is collected for serving the customers. Many have been known to add a service charge in the range of 5-20 per cent, over and above the price of the meal and taxes.
At this juncture, the Department of Consumer Affairs (DCA) has now addressed this grievance with a clarification issued on Monday, which states that service charge is a voluntary payment that a patron can refuse to shell out in case he feels the service provided to him is not up to the mark.
