service charges and its legality.
The hoteliers are running the show to cater the needs of public by providing food stuffs to them with the facilities these hoteliers could afford to provide. According to the standard of hotels, they are rated as low calls, middle class, and 3 stars,4 stars, 5 starts etc. The affluent persons who have no mind for the money in their purse can allowed to pay service tax according to the degree of service they receive from 3 star to 5 star hotels. But this system should not be introduced in ordinary hotels /restaurants /eatouts where not special provisions are made to the customers by the owners of these hotels/restaurants etc. If this service charge method is introduced in hotels etc, then Departmental stores will demand the same, grocery shops, pharmacist/medical shops will demand service charges, and all and sundry middle class establishments will demand that they too can demand service charges. This will open the pandora bod and very legal issues will arise. It is pertinent to say that in MALLS where public are allowed to go to shelves and pick their products will demand that service charges must be calculated for their service and deducted from the bill cost. Why are you inviting more problems in this country which is already flooded with millions of problems. more
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Service tax and service charge is completely and categorically different. While former is charged according to govt directives and earn revenue the latter is charged according to whims and whish of the owner. Hotels etc are opened with intention of serving customers. Service is given and commodities are sold according to prepared price list in which profits and service charge is already included. Charging again for service rendered is not only illegal but also unethical. more
May 08
Friends can't we boycott going to restaurants for a month, all those hoteliers will be on roads.Will understand they cannot force any conditions like this.But I know there r many members who will come out with filthy arguments saying those who r alone they have to eat outside, what a pity. Every one feels the pinch but no one wants to boycott . Great. Jai Hind more
Apr 16
THIS GOVERNMENT is meant to collect taxes. Taxes are needed but there must be some rational. Now a days the tax regime is terrifying more
Apr 15
While fixing price of a menu the hoteliers are definitely adding its cost price and all kind of incidental charges and their hefty profit thereon and charging cost of service separately is unjustified. But it is important to note that the customers need to pay two kind of service charges on their bills as service tax and service charges. While the service tax goes to the government for no services given by them, the service charges are pocketed by the hoteliers. We leave no occasions to raise our voice against such service charges but never put a question to the service tax which is totally unjustified. The service tax was initially introduced around a decade ago or so on a few government provided services at a nominal rate with a promise to withdraw it once its (government) economical condition is eased but every year thereafter they went on identifying new services and afflicting service tax there on with simultaneous increase in the rate thereof and as on date we are paying service tax on more than 400 so called services at a hefty rate of 15% increased from initial 2%, which is proposed to be again increased to 18% on introduction of the proposed GST. Till now neither any individual nor any citizens' forum had raised any question against this tax. Interestingly, even none of the nation's political parties had ever put any question in the Parliament against this tax as directly or indirectly they had been involved in inflicting this tax on the citizens. Therefore, the government has no moral rights to prevent the hoteliers from the recovery of service charges and very cleverly asked the consumers to be selective in paying such charges. more
Apr 13
