Charging of service charge by restaurants by misleading the diners- Awareness tip
It was and is a known thing that the Governments enacts/ frames the rules and regulations for the business houses and business houses invents new methods how to violate.
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 service tax. I raised the point and requested the author of the post to clarify but the author has not responded.
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 from the bill if they dont want to pay the tip. more
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 service tax. I raised the point and requested the author of the post to clarify but the author has not responded.
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 from the bill if they dont want to pay the tip. more
Viewed by 43
Opposition parties must see all these posts and firm up their electoral strategies to ease the financial burdens of common man present Government levying ill advised by persons without economics background. more
Jun 05
@ Shri Srinivas Parampalli Ji, Sir, the cashier when pointed out agreed that the service charge is being collected pretending it to be as tax so that the consumers should not dispute on such payments feeling that they are paying taxes to the Governments. I got it removed when pointed. I feel the matter need to be reported to Trade Tax Department/ GST Council as well as can be taken up as criminal before consumer forum. However, a question before consumer forum may arise as to whether the petitioner disputed the amount or whether the petitioner has sought for the excess amount having been charged. As such practice may continue may be an action under criminal offence may be the solution. What members suggest. more
May 21
is this not a fraud, service tax no more exist and collecting this on this head is a serious excise fraud. matter must be reported to GST council for appropriate action and recovery of all such taxes collected. more
May 21
