Stand up on service charge
Delhi restaurants are charging 20% vat on alcohol. 12.5% on food and soft beverages. Then there is service tax service charge swachh cess and krishi kalyan cess.
atleast stand up and stop this service charge. If every one stands up and asks their restaurant who is charging service charge to take it off, change will begin. more
Restaurants should not be allowed to arbitrarily charge a service charge in the bill. It should be the right of the customer to pay a service tip based on the experience at the hotel. more
Our Govt has issued a very soft advise for Restaurant to waive off the service charge. Now the question is who will argue with the restaurant not to charge for the service charge for whatsoever reason. The food bill already contains about 40% as service charge as per Govt. of India notification on service tax. The taxing the diner with another 20% as service charge and then again service tax on the service charge shall another be taxing. The Govt should have come out for the directions not to charge the service charge in the bill and those who are willing to pay may pay as 'tip'. Why someone should charge VAT, Service tax on the packed beverages which are already charged on MRP. Incidentally an article tiled "whether Department of Consumer Affairs is serious enough to address the issue of service charge" is on my blog http://skvirmani-jagograhak.blogspot.in/2017/01/weather-recent-advise-of-department-of.html The blog also contain an article 'Are Resturants and Hotels adapting to unethical business practices' on 21st April 2015. The recent advise of Department of Consumer Affairs even though a soft but covers based on the points brought therein. Those who are interested may like to go through the article and provide their feedback to consolidate and take up the issue with appropriate authorities. more
A lot has been chatted in this Circle on this subject. Yet the eyesore remains the 10% service charge which customers feel should be left to their own choice and discretion. In a way, rightly so. Example: you invite say a dozen persons for dinner. Including drinks the bill, say, amounts to Rs.30k. Now, don't please raise your eyebrows. The Delhiites are well known not to ditch the booze over dinner. As such the booze bill would perhaps amount to more than two-thirds of the total. If you add the 20@ vat on booze, 12.5% on food etc., then the service charge is certainly going to be in the neighbourhood of 3k or thereabout. For a maximum of two waiters serving a dozen guests would go home with 3k as tips alone for a service which may not have lasted more than two hours, which sensible man would want to do that? This certainly does not compare with the full-day-wage of a mistri,or a carpenter or a plumber. Someone needs to do some thinking about this, right? more
Agree. But the neo rich couldn't care less more