Most restaurants add a service charge to the bill, which also includes service tax and value added tax.
New Delhi:
Aam Aadmi Party's trade wing on Wednesday asked the Centre to abolish levying of service charge in restaurants.
It said it has also written to Union Finance Minister Arun Jaitley on the issue.
AAP's trade wing convener Brijesh Goyal said the Centre's order which allows a consumer the right to refuse to pay the service charge was leading to confusion between customers and restaurant owners.
"So, in order of avoid this confusion, the Centre should abolish levying of service charge completely," Mr Goyal said.
Earlier government has clarified that the service charges on food bills in hotels and restaurants are not compulsory.
Service charge constitutes 10 per cent of the bill, apart from VAT and Service Tax. It ranges from 5 to 20 per cent of the bill and is added to it instead of tips.
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.
With inputs from PTI
It said it has also written to Union Finance Minister Arun Jaitley on the issue.
AAP's trade wing convener Brijesh Goyal said the Centre's order which allows a consumer the right to refuse to pay the service charge was leading to confusion between customers and restaurant owners.
"So, in order of avoid this confusion, the Centre should abolish levying of service charge completely," Mr Goyal said.
Earlier government has clarified that the service charges on food bills in hotels and restaurants are not compulsory.
Service charge constitutes 10 per cent of the bill, apart from VAT and Service Tax. It ranges from 5 to 20 per cent of the bill and is added to it instead of tips.
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.
With inputs from PTI
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