Good work on Service Charge
It is nice to see that localcircles and Dept of Consumer Affairs are active on issue of Service Charge at restaurants and restaurants will not face Income Tax Scrutiny on Service Charge.
This alone is very good because I hope many will hopefully say to hell with it, why invite tax man. Once he looks at service charge, he will also look at income. Half of the income for even fancy restaurants is in kachha/without bill.
I am surprise though that news report says in our circle survey 30% people said they did not bother to check if service charge was being levied. How can we ourselves be so ignorant?? more
This alone is very good because I hope many will hopefully say to hell with it, why invite tax man. Once he looks at service charge, he will also look at income. Half of the income for even fancy restaurants is in kachha/without bill.
I am surprise though that news report says in our circle survey 30% people said they did not bother to check if service charge was being levied. How can we ourselves be so ignorant?? more
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Why should the wealthy bother for this kind of charges? They have more than enough money with limited avenues to spend being too miser to help the real needy of the society. Let them do refraining yourself from breaking head on the issue. more
Nov 24
Folks, the lawmaker in my opinion complicates the situation by introducing "exceptions". Air-conditioned restaurants may charge service tax, other may not. Cars with odd-even numbers may drive on odd-even days of the week respectively, but look at the "innumerable" exceptions that constitute part of the "baraat"! Flaunting rules has become the second nature of those doing ANY kind of business, because there have been no "checks". The worst part is that they have been and even now get away with it. Under the circumstances, it's no surprise that the restaurant-visitor does not care whether service charge is levied or not, as against creating a scene to remove it from the bill, especially when the bill amount is not so large.....relatively. At the same time, there are hotels/restaurants which openly display posters at the entrance that they DO charge service tax. WHY DOES THE LAWMAKER NOT COME AND PENALISE THEM? But, ask a client who's held a wedding reception in a hotel and they've to foot service charge of 10% on a total bill amount of several lakhs. That's what pinches.......but then, does it really? more
Nov 23
Sorry, but I am unable to find any reason to be happy if Service Charges are kept out of the Income Tax ambit. Service Charges collected are supposed to be distributed among the staff members and Income Tax scrutiny could have ensured that the money collected is distributed among staff members. If it is excluded from Income Tax ambit, there are brilliant chances that Hotels and Restaurants may pocket the collected money. Does such efforts indicate that, just like our Govt., LocalCircles is also working for Corporate and not for common cause? Or both are hand-in-gloves? more
Nov 23
