Service Charge - Points to Ponder
1. The Service Charge is included in bills by some restaurants only.
2. It is one more excuse to inflate the bills and fleece customers irrespective of standard of service provided.
3. Service Charge benefits the Government also as Service Tax is paid on total of bill amount and service charge. Additional Service Tax amount 5.6% of service charge goes to government.
4. Service Charge makes life of customer easy as they do not have to bother about how much to tip.
5. Some customers are at a loss, who do not check the bill and pay tip in addition to service charge already collected by the restaurant.
6. This practice of levy of service charge can be abolished either by Government by amending the Consumer Protection Act or by Consumers by avoiding to visit restaurants levying service charge.
7. Surprisingly no political party has taken up this issue on behalf of consumers.
8. Even concerned Ministry is issuing only guidelines which restaurants may not follow.
In my humble opinion both Service Charge and practice of Tips should be banned by government both at centre and states. more
2. It is one more excuse to inflate the bills and fleece customers irrespective of standard of service provided.
3. Service Charge benefits the Government also as Service Tax is paid on total of bill amount and service charge. Additional Service Tax amount 5.6% of service charge goes to government.
4. Service Charge makes life of customer easy as they do not have to bother about how much to tip.
5. Some customers are at a loss, who do not check the bill and pay tip in addition to service charge already collected by the restaurant.
6. This practice of levy of service charge can be abolished either by Government by amending the Consumer Protection Act or by Consumers by avoiding to visit restaurants levying service charge.
7. Surprisingly no political party has taken up this issue on behalf of consumers.
8. Even concerned Ministry is issuing only guidelines which restaurants may not follow.
In my humble opinion both Service Charge and practice of Tips should be banned by government both at centre and states. more
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Oct 31
Many of the consumers still pay tips and Service Charge. Direct payment of tips is a result of good service rendered by the table boy. Service charge is collected by the owner and simply a percentage of 5.6 is paid to the government. more
Apr 28
1. Most restaurants are billing such charges based on Govt. circular. While raising this issue with Main Land China restaurant, I was shown a Govt. Circular, which was ambiguous & taking shelter under this circular most restaurants are billing service charges & do not budge to relax. 2. While this is being discussed in this forum for a quite long time now but no action is taken till date. 3. Pending detailed review by Govt., immediate clarifications can be issued by Govt. to stop billing service charges on 100% amount, which is ambiguous in Govt. circular. more
Apr 26
we have a number of active voluntary consumer organisations and civil society organisations.Now that govt. has issu ed guidelines in the matter, these VCOs and CSOs should go for public awareness programmes and even dharnas in front of such restaurants. Consumer movement can be built up only by making it a organised people movement. The VCOs and CSOs and activists should set example filing complaints in consumer courts. I hope they will do it. more
Apr 26
Concerned Ministry has made it clear by issuing notification. Now it is upto the valued customer, to decide how much service charge he will pay, or he will pay tips to the food server instead. One can indicate it in the bill. Consultant(Industry& Management practice) more
Apr 25
