Service Charge Experience
I had a recent experience when I took a group of seven people to a famous hotel com restaurant of five star grade called Haveli at Dharmapura behind Juma Masjid in Old Delhi. It was a fixed menu on sundays and after enjoying the food which was sumptuous and nice the bill came with a service charge of 10% that is 1780.oo. GST 18%.
I went to the manager and asked how he charged me service charge. Told him about govt circular. .He told me to wait and went to consult his superior and came with a revised bill of zero service charge. I save 1700.00 ; Of course I did not forget to tip the waiter nicely.
But, having done that I found most customers are foreigners and they pay service charge as billed. In most foreign countries especially in USA refusing to pay tip or service charge is considered as impolite manners. more
I went to both these restaurants and questioned them on service charge and on VAT.
The manager of Zabardast offered to return the service charge. I took it and gave it to the waiter who had served on our table. The amount was minimal, not worth creating a shindy.
I was told by GT Road restaurant that VAT was applicable only to drinks and GSTs to the food items. The bill proved it, so this matter is solved. more