Restaurants cannot decide service charge, Govt says
In January, the Department of Consumer Affairs stated that service charge on food bills is not compulsory and a customer can choose to have it waived if not satisfied with experience.
The government on Friday approved the guidelines on Service Charge and said that hotels and restaurants cannot decide on the amount of service charge that a customer has to pay.
Food and Consumer Affairs Minister Ram Vilas Paswan, in series of tweets, said that hotels/restaurants should not decide how much service charge is to be paid by the customer and it should be left to the discretion of customer.
ALSO READ: Here's what Service tax, service charge and service tax number mean for your food billPaswan confirmed that the guidelines are sent to states for necessary actions at their ends.
In January, the Department of Consumer Affairs stated that service charge on food bills is not compulsory and a customer can choose to have it waived if not satisfied with experience.
ALSO READ: Centre to issue advisory against service charge on food bills
States were told to ensure that hotels/restaurants disseminate this information through displays in their premises.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.