Bad Service? You No Longer Have To Pay Service Charge At Restaurants

[timmy]

 

Most restaurants add a service charge to the bill, which also includes service tax and value added tax.

NEW DELHI: 

HIGHLIGHTS

1. Service charges applied in lieu of tips cannot be forced on you
2. Hotel association says up to you to decide on paying service fee
3. Government says payment has to be voluntary

 

 If you eat out and are not happy with the service, you can refuse to pay the service fee that's automatically tacked on to your bill by many restaurants.

The government has clarified that the service charge -which ranges from 5 to 20 percent and is added to bills instead of tips - cannot be mandatorily applied by restaurants. The Departrment of Consumer Affairs said the automatic applying of a service fee violates fair trade practices.
 

 

"Restaruants (sic) are billing service charges in addition to taxes. Service charge is optional. Consumer has a discretion to pay or not," tweeted Consumer Affairs and Food Minister Ram Vilas Paswan.

The Hotel Association of India has confirmed 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" according to a statement by the government.
 

State governments have been asked to ensure that restaurants and hotels are made aware of the new policy and that notices must be put up informing customers that service charge is discretionary and can be waived for an unhappy customer.

Read entire statement here:

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.

http://www.ndtv.com/india-news/restaurants-service-fee-you-can-now-refuse-to-pay-if-youre-not-happy-1644229?pfrom=home-lateststories

[Rendu]

mana bewarse gallu as usual....ga complaints isthu ne vuntaru...... to save that little money....

ikkada US lo chusaga......

hello babu ninne can i some suttaney (chutney)  ... can i get some pyass (onions)

water with no ice..... porapatuna waiter gadu isthey.... edo atom bomb padinatlu feel avutaru....

ada ladies gurunchi peddaga cheppaakkarledu...... Meanest people on the planet..... Yaaak thu.....

[Kool_SRG]

Enta Chesina just to save money bad service antaru..Faltu rules just akkada godava jaruguddi 

[Kool_SRG]

28 minutes ago, Rendu said:

mana bewarse gallu as usual....ga complaints isthu ne vuntaru...... to save that little money....

ikkada US lo chusaga......

hello babu ninne can i some suttaney (chutney)  ... can i get some pyass (onions)

water with no ice..... porapatuna waiter gadu isthey.... edo atom bomb padinatlu feel avutaru....

ada ladies gurunchi peddaga cheppaakkarledu...... Meanest people on the planet..... Yaaak thu.....

+1

[MRI]

2 hours ago, Rendu said:

mana bewarse gallu as usual....ga complaints isthu ne vuntaru...... to save that little money....

ikkada US lo chusaga......

hello babu ninne can i some suttaney (chutney)  ... can i get some pyass (onions)

water with no ice..... porapatuna waiter gadu isthey.... edo atom bomb padinatlu feel avutaru....

ada ladies gurunchi peddaga cheppaakkarledu...... Meanest people on the planet..... Yaaak thu.....

 

1 hour ago, Kool_SRG said:

Enta Chesina just to save money bad service antaru..Faltu rules just akkada godava jaruguddi 

+1

[nandananditha]

2 hours ago, Kool_SRG said:

Enta Chesina just to save money bad service antaru..Faltu rules just akkada godava jaruguddi 

-1

 

[aviator]

2 hours ago, Rendu said:

mana bewarse gallu as usual....ga complaints isthu ne vuntaru...... to save that little money....

ikkada US lo chusaga......

hello babu ninne can i some suttaney (chutney)  ... can i get some pyass (onions)

water with no ice..... porapatuna waiter gadu isthey.... edo atom bomb padinatlu feel avutaru....

ada ladies gurunchi peddaga cheppaakkarledu...... Meanest people on the planet..... Yaaak thu.....

+1

[dewarist]

inkoka raccha start avutadi restaurants lo

[lazybugger]

service charge meedha tax ivvatledana?

[kittaya]

4 hours ago, Rendu said:

mana bewarse gallu as usual....ga complaints isthu ne vuntaru...... to save that little money....

ikkada US lo chusaga......

hello babu ninne can i some suttaney (chutney)  ... can i get some pyass (onions)

water with no ice..... porapatuna waiter gadu isthey.... edo atom bomb padinatlu feel avutaru....

ada ladies gurunchi peddaga cheppaakkarledu...... Meanest people on the planet..... Yaaak thu.....

andaru ala undaru man...  okarini chusi andaru ante aelaga .... 

mention specifically only some ani... 

 

nijam cheppali ante usa nunchi velle thathalu baga aekkuva chestharu mostly...

[barney]

5 hours ago, Rendu said:

mana bewarse gallu as usual....ga complaints isthu ne vuntaru...... to save that little money....

ikkada US lo chusaga......

hello babu ninne can i some suttaney (chutney)  ... can i get some pyass (onions)

water with no ice..... porapatuna waiter gadu isthey.... edo atom bomb padinatlu feel avutaru....

ada ladies gurunchi peddaga cheppaakkarledu...... Meanest people on the planet..... Yaaak thu.....

 

but default service tax veyyadam correct kadu ga.. and on the top of it waiters tip kosam choostaru endo india...last mnth vella total rip off e taxes.... service tax ettesi tip entiste antha teeskovalii...

[MRI]

why don't they remove it completely and allow customers to tip? lots of confusion..

also this one is also confusing

 

[nandananditha]

3 hours ago, kittaya said:

andaru ala undaru man...  okarini chusi andaru ante aelaga .... 

mention specifically only some ani... 

 

nijam cheppali ante usa nunchi velle thathalu baga aekkuva chestharu mostly...

+1

bawarchi biryani tinni 5 rs kuda tip evani musthi na konde lani susa

[kittaya]

4 hours ago, nandananditha said:

+1

bawarchi biryani tinni 5 rs kuda tip evani musthi na konde lani susa

[girishv]

Last month India vella, went 2 a restaurant with family for lunch....14% VAT, 6.5% service tax, 5.5% service charge, the service was bad....we were not too pleased with the service...manager ni pilichi adiga, service tax enti, service charge enti ani....service tax govt. ki velthundi, service charge management ki velthundi ani cheppadu....26% tax overall....

 

service bagunte tip pakka istham, baga lekapoyina ivadam naku nachaledu....