Service charge at restaurants

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Same unethical thing goes with overpricing things at theaters. I have seen in one theater at least where mineral water bottle was price at Rs 40 and it was written "Specially packed for XYZ theater" and MRP of Rs 40. You cannot even fight in such cases :(

But this may be not relevant to the topic.
 
@Magnet:

I mentioned the establishment. No, it not a Five Star rated eatery. It is a chain of restaurants strewn across NCR, and caters exclusively to prevalent Punju taste with an expensive ambiance. The bill I showed for is at Cyber City which is exclusively high end corporations, so they charge even more. :)
 
thank god kolkata dosnot have such blood sucking eateries... here they charge 13.5% vat and thats all... tip as ur pocket permits..
 
shall start paying attention at the 'charges' now.
i have been generous so far..just to realize i have been generous unnecessarily.

but if i look at it from a different perspective..then the people working in service industry in india are always underpaid. you will feel pity if you compare their wages per hour with yours.
tips are 10-20% in europe n states and people are generous. the wages are decent too.
it is not the case here, everybody wants the best service at the worst expenditure... I dont mind paying 10% as long as it is being distributed to the staff and not going to the hotel. most hotels that my friends have worked at distribute it among the staff.
 
I hope its distributed amongst the people who are working there. Then again, I don't think a lot of people care unless large amount is restaurant owners follow this trend.

YEAH!!! Self service restaurants establishments are better off. A lot of people tip anything between 10-50 bucks despite being charged for service tax and all, so if you don't tip such waiters who usually get tipped, they give one of those stares. Food is becoming more expensive and it yet it doesn't taste as good as it used to be. I've stopped non veg food as well on hotels/restaurants and food joints.
 
@madnav

You are right about the payments. They have stress-nous shifts and work hours and payment not that good. My brother sometimes works in evening 7 to morning 6 shifts and sometimes morning 8 to evening 6 and similar. He too says that tips is something that they hope is good to make their final earning at the end of month look good.
 
Just be careful that you are not being charged something called 'Service Tax'. I don't think there is a Service Tax applicable for restaurants as yet. Service Charge is a different thing. I too have seen this being very common in Delhi NCR. I had not seen this component on bills earlier and happily tipped 5 - 10% the first few times here, until a few of my friends were taken aback and pointed me to the Service Charge on the bill. Have stopped paying tips ever since. I have noticed that only the 5 star hotels don't have a service charge. It is only there that I tip. Some restaurants in fact do not charge the tip even if you have mentioned it, if they already have a Service Charge in the bill. That Khana Khazana guy's restaurant comes to mind. Too bad I don't remember the name as I thought the food was blah

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MAGNeT said:
Are they hidding blood diamond in roti and naan. Also is the fresh lime soda coming directly from sahara desert that it demands 160 buks?
He surely must had food at taj or hyatt.
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It is made with extreme love :P

I don't think you can get a Naan at 95 bucks in Taj or Hyatt. The cheapest I remember in Delhi is 120 at Ramada, and prior to that I had paid 150 at Le Meridien in a different city
 
See... If a 10% percent is charged at any restaurant u cannot do anything at all besides just smile and pay it and hope that it gets distributed amogst the staff and not taken by the owners...

I think it is a good thing that they are taking service charges from us in the bill only cause have seen people tipping 50rs to the waiter after they have served 10 people and they were billed aroung 2k or more for the food... He worked so hard to serve the people and he gets only Rs 50... that is really bad... So charging the service tax and distributing is really good but a strict no if they do not distribute it to the staff... then again nothing can be done to ensure the same....
 
MAGNeT said:
Shubham i find a clear discrepancy in your bill amount of service tax of 125.As far as my basic tax knowledge goes or what i read in newspaper service tax on restaurant is charged at 10% or 10.3% of 30 or 30.9% of gross amount of bill(so something around 3.09% of main gross amount it comes).If you check asingh bill and calculate the same you will get similarly 90-95 rs which is correctly charged or a rupee here and there.But in your case the person might had included service charge and service tax together.If you have bill and if it clearly states service tax as 125 rs on 1300 bill than you surely have a case in hand for consumer court.
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I'm really sorry its not service tax it is service charge.

Now I have the bill in front of me. Food is Rs1250
Service Charge at 10% = 125
VAT = 156
Total 1531
 
Yes, it has become a norm in most of the high end restaurants here in Delhi. The first time I noticed this was when I tipped my waiter Rs. 100 and he refused to accept it pointing me towards the service charge in the bill. I agree, 10% is a pretty big amount, it pinches the most especially if you are dining alone.

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raksrules said:
Same unethical thing goes with overpricing things at theaters. I have seen in one theater at least where mineral water bottle was price at Rs 40 and it was written "Specially packed for XYZ theater" and MRP of Rs 40. You cannot even fight in such cases :(

But this may be not relevant to the topic.
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Those water bottles were 60 bucks per bottle during the recent IPL matches in Ferozshah kotla. I remained thirsty throughout the innings out of principle. :P

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lida said:
I think it is a good thing that they are taking service charges from us in the bill only cause have seen people tipping 50rs to the waiter after they have served 10 people and they were billed aroung 2k or more for the food... He worked so hard to serve the people and he gets only Rs 50... that is really bad... So charging the service tax and distributing is really good but a strict no if they do not distribute it to the staff... then again nothing can be done to ensure the same....
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But isn't that his job description? He is not doing any favor by serving more people, its just a part of his job. The tip should solely be at the customers discretion. The downside to this new service charge norm is that even if the service is piss poor, we still have to shell out the 10%.
 
FaH33m said:
150 for a freaking butter naaan and 95 bucks for a Roti :O . What restaurant is that. Some 5 star ?
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just not that ,330 for 2 fresh lime sodas :S

Aces170 said:
Lol also ask him, do they spit on the food of people who don't tip :P
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:rofl: I bet it will be a lot tastier :ohyeah:
 
Those water bottles were 60 bucks per bottle during the recent IPL matches in Ferozshah kotla. I remained thirty throughout the innings out of principle.
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Dont think people's thirst decrease over age :P

@Agantuk: Serivce tax is a norm in Mumbai. since some time..
 
agantuk said:
Just be careful that you are not being charged something called 'Service Tax'. I don't think there is a Service Tax applicable for restaurants as yet. Service Charge is a different thing. I too have seen this being very common in Delhi NCR. I had not seen this component on bills earlier and happily tipped 5 - 10% the first few times here, until a few of my friends were taken aback and pointed me to the Service Charge on the bill. Have stopped paying tips ever since. I have noticed that only the 5 star hotels don't have a service charge. It is only there that I tip. Some restaurants in fact do not charge the tip even if you have mentioned it, if they already have a Service Charge in the bill. That Khana Khazana guy's restaurant comes to mind. Too bad I don't remember the name as I thought the food was blah

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It is made with extreme love :P

I don't think you can get a Naan at 95 bucks in Taj or Hyatt. The cheapest I remember in Delhi is 120 at Ramada, and prior to that I had paid 150 at Le Meridien in a different city
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It is a service industry.
Who else will apply service Tax then?

It is an enforcement by government.
Tax is something that goes to GOV. 12.5% ST is not sane when employees again have to pay IT on salary.
So they break the salary in parts with Tips / Service charge.
They try to keep it as less taxable further as possible.
Many hotel and restaurant owners protest when these taxes increase. They do not get any part of it. Plus their business suffers.

Service Tax is mandatory. Don't object on that when you go to restaurant next time else you will make fool out of yourself.

Also, you can not argue about pricing of good you purchase.
Ever wondered why dominos charges 30bucks for a half liter coke bottle that you can purchase for 20 at retail stores?

That is because it is a service industry. Retail Industrial regulations do not apply. They can charge as much as they want as fees for stocking and 'serving' you with your 'order' under 'service charge'.

If you are observing pricing..
Everybody wants higher income and lower expenditure.
Most of the volatile expenditure is related to services than retail.

because the servants in service industry also want higher income.
How are they suppose to survive with worsening economy?
On 2 vada paav per meal ?
 
IMO the rates displayed on Menu card should be inclusive of all taxes. This is a more transparent way because in the end one ends up paying much more than what is quoted in the Menu cards.

Some 1-2 % taxes can be left out if they wary a lot but the ones like 8, 10, 12% etc. should definitely be mentioned.

About tips, most waiters get pissed when not tipped! Fools should realize its their job...!
 
AFAIK, service tax is applicable only on those resturants which have the following service during any part of the year.

As per the govt. rules :
“to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has license to serve alcoholic beverages in relation to serving of food or beverages, including alcoholic beverages, including alcoholic beverages or both, in its premises”.
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i.e, a resturant with A/C facility(which is obvious) and should have the licence to serve alcholic beverage can charge service tax.

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teche said:
IMO the rates displayed on Menu card should be inclusive of all taxes. This is a more transparent way because in the end one ends up paying much more than what is quoted in the Menu cards.

Some 1-2 % taxes can be left out if they wary a lot but the ones like 8, 10, 12% etc. should definitely be mentioned.

About tips, most waiters get pissed when not tipped! Fools should realize its their job...!
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isn't it similar to , a person not getting OT allowance when he worked OT to complete his assigned job. :P
 
madnav said:
It is a service industry.
Who else will apply service Tax then?

It is an enforcement by government.
Tax is something that goes to GOV. 12.5% ST is not sane when employees again have to pay IT on salary.
So they break the salary in parts with Tips / Service charge.
They try to keep it as less taxable further as possible.
Many hotel and restaurant owners protest when these taxes increase. They do not get any part of it. Plus their business suffers.

Service Tax is mandatory. Don't object on that when you go to restaurant next time else you will make fool out of yourself.

Also, you can not argue about pricing of good you purchase.
Ever wondered why dominos charges 30bucks for a half liter coke bottle that you can purchase for 20 at retail stores?

That is because it is a service industry. Retail Industrial regulations do not apply. They can charge as much as they want as fees for stocking and 'serving' you with your 'order' under 'service charge'.

If you are observing pricing..
Everybody wants higher income and lower expenditure.
Most of the volatile expenditure is related to services than retail.

because the servants in service industry also want higher income.
How are they suppose to survive with worsening economy?
On 2 vada paav per meal ?
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Service tax and service charge are two different things. Tax goes to govt. Charge need not. Moreover, restaurants levy a VAT, not ST. Atleast, I haven't seen restaurants levying ST over VAT. Anywhere the word 'tax' is used, it means something that the govt gets, so if someone is listing an item as tax, and not directing the proceedings to the govt coffers, he is guilty of tax fraud.

Since you mention the coke thing, I am reminded of this rule from the consumer act that any packed item cannot be sold at higher than MRP. Case in point, water bottles at multiplexes / malls / big hotels. If anyone is charging more than the MRP on an unopened bottle, they can be dragged to customer court. Most people don't bother thinking it is just 20 bucks or 30 bucks. However, this is clear violation of rules
 
^^But the problem is that the same bottle available in kirana store for 15 Rs a liter (with MRP a Rs 15) is available for Rs 40 (MRP is Rs 40) is some XYZ theater and the MRP written on both is different. That is a workaround the malls/multiplex people found to avoid being guilty.
 
Service Tax which is currently 8% will be down to 5.5% in a few days....

...it is to be given to the excise dept. after the establishment crosses sales of 10 Lacs.

it is not a replacement for TIP or anything. I dont know whats the issue here,

it is just another tax our government puts,

....there is nothing we hoteliers can do in the service industry to get away from this.

Hospitality is a luxury and we even have to pay luxury tax, I don't know now how that is all calculated

now or anything now our Accountant does all this stuff...I just called her to check this Service tax thingy.
 
raksrules said:
^^But the problem is that the same bottle available in kirana store for 15 Rs a liter (with MRP a Rs 15) is available for Rs 40 (MRP is Rs 40) is some XYZ theater and the MRP written on both is different. That is a workaround the malls/multiplex people found to avoid being guilty.
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Yes. This has happened because of a few cases against malls / multiplexes for charging exorbitant prices. What these guys then did is they tied up with these vendors to create non standard packages (note that they won't be 500 ml, they might be 450, 550 or something like that) with a higher MRP.

This reminds me. I encountered a similar (fraud IMO) thing in Big Bazaar. There was this packet of snacks from a local brand available for 71 bucks for a 400gm packet, which I used to buy regularly from there. Last month, I happened to find the same packet for 45 bucks in my local kirana store. I first thought I was mistaken. However, on closer inspection I found that the standard rate for that packet was 45 for a 350 gm packet. All shops in my neighbourhood had the same pack. Only Big Bazaar had a 400 gm one, but an exorbitant rate. So much for being the cheapest
 
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