Hotels, restaurants levy service change

Dear Editor,

It refers to newspaper-advertisements on 03.05.2016 whereby Central Board of Excise & Customs (CBEC) has pictorially revealed that effective service-tax inclusive of cess on food served in air-conditioned restaurants is just 5.8 percent while restaurants are levying ten-percent additional as service-charge.

Rather than issuing clarifications through newspaper-advertisements, CBEC and other concerned authorities in central and Delhi governments should give newspaper-advertisements instead give stern warning to restaurants against looting of consumers through such unnoticed levy of service-charge.

On being queried in a restaurant on such unhealthy practice of levying service-charge, it was revealed that it is to be distributed amongst the serving-staff as a sort of ‘compulsory’ tip. It is something other than serving-staff even then expects and stands before the customers in expectation of some more ‘tip’. Giving ‘tip’ depends on personal wish of the customer.

Union and Delhi Government should take strict-most action against the practice of forcing compulsory ‘tip’ in name of service-charge since consumers normally take ‘service-charge’ also as a sort of government-levied tax. Even banks should be directed not to provide space for ‘tips’ in their credit-card slips. It is also time that members of public now do away with British-era practice of paying ‘tips’ to serving-staff anywhere at hotels, restaurants or at any other place mainly for status-symbol.

‘Tips’ are a sort of bribe for getting better service. In countries with highest honesty-ranking, practice of paying ‘tips’ does not exist at all. Department of Consumer affairs should launch a publicity-campaign under its programme ‘Jago Grahak Jago’ educating people for discontinue practice of paying ‘tips’.



1775 Kucha Lattushah

Dariba, Chandni Chowk

New Delhi-110006 (India)


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