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Ministry of Finance Press Release dated 14-07-2015 Service Charges Collected by Restaurants/Hotels/Eateries Retained by the Restaurants/ Hotels/ Eateries and are Not ‘Service Tax’ Imposed by the Government Some restaurants/hotels/eateries besides charging for the food and beverages are also charging ‘service charges’ in their bills. The proceeds of the ‘service charges’ are retained by the restaurants/hotels/eateries. Some of the consumers have a misapprehension that these ‘service charges’ are being collected by the restaurant on behalf of the Government as tax.
It is clarified that these ‘service charges’ collected by the restaurants/hotels/eateries are retained by the restaurants/hotels/eateries and are not ‘service tax’ imposed by the Government.
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