Is Service Charge Black Money generation

My father in Delhi tells me that most of the restaurants do not report service charge in their income when doing accounting.

So if a restaurant only gives say 40% service charge collected to its staff, that means that 60% is unaccounted or black money.

Can someone carify on this. Tax men should be investigating this. more  

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yes to an extent, as many do not register and do not pay to GOI more  
1. I think that the expenditure on cutlery,linen etc and service is included in the price of the food item. The practice is for generations . why the service charges are charged again separately now. 2. the tip amount totally goes to service people but the service charge 40% only given to them as stated by some one. So who are benefited by service charge and who are losing. more  
1. Most hotels charge VAT as well as service charge on 100% amount of bill, which is incorrect and amounts to double taxation. 2. Any amount collected in name of "TAX" be it VAT, SAT, Ser. Tax, Swatchh Bharat & krishi Kalyan tax, must be deposited with Govt. Using part of tax collected at will of owner, is a crime. 3. Hotels cannot utilize part of tax collected for buying cutlery, linen etc. Buying such items is part of pricing gimmick. If they want to recover every cost from customer , food prices should be based on market (same for all be no star, 1 or 2 or 3 or 4 or 5 Star hotels) & then show every item %age in bills. more  
I am of the opinion that we should allow the present practices of customer paying the tip. It is always optional and service charge is a criminal exploitation of customers. On Thursday, 27 April 2017 2:51 PM, Nikita Mehra wrote: more  
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