Service Tax

Restaurants billing service charges optional to pay by consumers who have discretion to pay such service charge or not-Press Release

Restaurants billing service charges optional to pay by consumers who have discretion to pay such service charge or not-Press Release

Restaurants billing ‘service charges’ in addition to taxes is optional: Department of Consumer Affairs

Consumer has discretion to pay ‘service charge’ or not: Department of Consumer Affairs

A number of complaints from consumers have been received that hotels and restaurants are following the practice of charging ‘service charge’ in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him. The Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices. In this context, the department of Consumer Affairs, Central Government has called for clarification from the Hotel Association of India, which have replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily.

The Department of Consumer Affairs has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also to advise the Hotels/Restaurants to disseminate information through display at the appropriate place in the hotels/restaurants that the ‘service charges” are discretionary/ voluntary and a consumer dissatisfied with the services can have it waived off.

Share

Recent Posts

  • Income Tax

ITAT allows remuneration paid by wives of CA partners for their services rendered in firm

Remuneration paid by CA firm to wives of CA partners for their services rendered allowed in the absence of any…

2 hours ago
  • Income Tax

When assessee did not opt yes or no to receive notices by email, such notices were no service

When assessee did not opt yes or no to receive notices by email, such notices amounted to no service In…

4 hours ago
  • Income Tax

CIT(A) should have considered detailed statement of facts before dismissing appeal

CIT(A) should have considered the details statement of facts filed before him before dismissing the appeal of the assessee observing…

5 hours ago
  • ICSI

Empanelment of General Observers for ICSI Examinations June 2026. Last date 28.04.2026

Empanelment of General Observers for ICSI Examinations June 2026 ICSI has invited interested members to enroll as General Observers for…

1 day ago
  • CA CS CMA

Engagement of Young Professionals CA for assistance in ITAT representation

Income Tax Department Pune is engaging Young Professionals CA for assistance in ITAT representation With a view to augment departmental…

2 days ago
  • Concurrent Audit

IDBI online application for empanelment of Concurrent Auditor. Last date : 27.04.2026

IDBI invites application for empanelment of Chartered Accountant firms as Concurrent Auditor for FY 2026-27 IDBI Bank has invited online…

2 days ago