Service charge at restaurants

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Aces170

Aces170

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In Mumbai since some time, a lot of restaurants have started charging 8% service charge over and above 12.5% VAT and 8% Service tax. A few people have told me, the service charge collected by the restaurant are distributed to the staff. Hence since last couple of times, I have stopped tipping, but I notice the stares I get from the waiters :P

So what do you guys do?
 
stop tipping and not visit the restaurant again ....its the same as tipping , you can raise the issue with the higher up saying you dont want to tip if the service was bad , i am very positive it is not a mandatory tax , only charged at the discretion of the restaurant
 
I will ask my brother about this service charge thing and yes that is the TIP actually which is distributed. My brother works in Orchid, Mumbai and he had told me about this tipping thing. This tip is like distributed which is different from the one which is handed directly by the customer to the hotel staff.
 
^^

It happens here. Been seeing it on bills for past 2 years almost. I never tip now..! It is 10% here.

As far as I know, that Service Charge goes to the establishment. Now they can do what ever they want. But it is charged for service. So the tip goes out the window.
 
raksrules said:
^^10% is insane :O
I have food for 500 rupees and am expected to cough 50 Rs for service. B$
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Just few days back....! Seeing is believing.
Service_image.jpg
 
raksrules said:
I will ask my brother about this service charge thing and yes that is the TIP actually which is distributed. My brother works in Orchid, Mumbai and he had told me about this tipping thing. This tip is like distributed which is different from the one which is handed directly by the customer to the hotel staff.
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Lol also ask him, do they spit on the food of people who don't tip :P
 
^^Lol...He had told me not to care about what you are eating when at a restaurant and told me never ever to visit inside a kitchen, Now that explains everything :P
 
Went to Jerry Wong's Chinese Restaurant yesterday after watching a movie at PVR Saket. Around Rs1300 for food and ~Rs150 VAT and ~Rs125 Service Tax. Gave Rs 30 as tip. If this thread was made a day ago I would have saved Rs30 :P
 
I am better off in those shivsagar type places where they at least dont have a this service tax and service charges and what not :|
 
Went to Jerry Wong's Chinese Restaurant yesterday after watching a movie at PVR Saket. Around Rs1300 for food and ~Rs150 VAT and ~Rs125 Service Tax. Gave Rs 30 as tip. If this thread was made a day ago I would have saved Rs30
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Service tax and service charge is different. Service tax is compulsory, whereas service charge at the discretion of the establishment.
 
Aces170 said:
Service tax and service charge is different. Service tax is compulsory, whereas service charge at the discretion of the establishment.
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I don't know if it was Service Tax or Service Charge but most probably it was Service Charge.

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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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Me too wondering the same thing!
 
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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raksrules said:
^^LOL i also though the same :P

That is freaking expensive restaurant
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:)

Punjabi By Nature. DLF Cyber City. GGN.
 
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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raksrules said:
^^LOL i also though the same :P
That is freaking expensive restaurant
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Damn look at fresh lime soda 330/- bucks for 2 sodas :P

I have also lately stopped giving tip at the restaurants where they charge additional service charge. Here in Gujarat it varies from 5% to 15% depending upon restaurant.
 
Well first though i dont visit restaurant often(i am too fond of home food) and not in 5 stars hotel at all.But i guess the restaurant who are charging this is doing something illegal on name of taxes.

First though i am not sure but i guess service charge comes from west where instead of tipping a % of service provided is charged and distributed to the waiter.So if one used 50 rs service and charge is 10% 5 rs goes to waiter and so on.

But the point here is there is no such law to charge service charge in INDIA( i might be wrong ) hence i feel though it being charged it ultimately goes to the pocket of owner and not the staff.Since we intelligent guys itself are not sure about the taxing rules what do we expect from the waiters who hardly understand ENGLISH.

Ill say ask the staff directly that when we ay 3000 amount bill is there any money shared with staff or not.You will get the answer.

Also see this

Service charge in restaurants is illegal - Economic Times

(also read the comments at end of the page)
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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FaH33m said:
150 for a freaking butter naaan and 95 bucks for a Roti
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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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