Have you checked your bill at restaurant before making payment
It seems now the restaurant owners have invented a new method of collecting service charges (known as tip) the charging of which otherwise is an optional one as per Govt. of India (Department of Consumer Affairs) recent notification. Attached is a scanned copy of the invoice wherein one can see that the restaurant has charged an amount of 5% of the bill amount showing it to be S.Tax. This was revealed by the waiter when confronted that it is service charge. By charging service charge showing it as service tax, no one would object due to lack of awareness and hence the restaurant have now taken advantage of such lackness of awareness and gaps have started misleading the consumers. This invoice is not an isolation as one of the post in the circle itself have attached an invoice wherein it has been noticed charging of the same charges under the head of VAT. I raised the point and requested the author of the post to clarify but the author has not responded. Please note that Service Tax and VAT after the implementation of GST are not chargeable. Surprisingly the restaurant in that post the bill of which is attached here have charged GST, VAT and Service Charges.
The consumers may kindly note the above and if they face the similar situation may ask the restaurant to remove theses charges even if shown as service tax or VAT from the bill if they dont want to pay the tip. more
The consumers may kindly note the above and if they face the similar situation may ask the restaurant to remove theses charges even if shown as service tax or VAT from the bill if they dont want to pay the tip. more
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Just like restaurants, there are many agencies exploiting consumers the same way. For example, LPG cylinder delivery boy always demand tips and we pay them from fear that he could manipulate next delivery if tip is not paid. Maturity insurance pension fund of Senior Citizens are reduced by GST by Insurance Companies to reduce the pension amount which doesn't make sense.These days consumers get exploited by any body and every body because Govt. doesn't clearly state their position and every body tries to exploit consumers.Let us all urge Consumer Circles to lead a movement with regulatory bodies to stop such exploitation. more
Sep 22
Is there a way to notify such malpractices to tax authorities and send the scanned copy to them? more
Jun 04
Why to pay the service charges? Are they not supposed to serve the customers? Why to pay tips? We must not pay anything extra. We are encouraging the wrong practices . more
May 27
Thanks for the valueable feedback, comments and suggestions. On the issue of service charge being charged as the tip, I personally feel that it is the individual who need to be come forward in asserting his rights. One should ask himself how someone can compel the person to pay for the tips. Even though it is written that service charge will be chargeable extra @xx% still one can opt not to pay as the menu card does not specify the level of the service it would offer in execution of the order and neither it specifies the quality of dishes it will supply to the customer. Even the government also cannot compel anyone to pay tip. more
May 24
