In a meeting with the National Restaurant Association of India (NRAI) today, the Central Government’s Department of Consumer Affairs (DOCA) requested that no service charge be levied. In fact, customers are asked to add a service charge to their food bill in restaurants across the country. The government has directed that this service charge not be collected because it is unconstitutional. The government may issue rules on this subject soon.
First and foremost, what is a service charge?
When you purchase a product or service, you must pay for it. This is known as a service charge. In other words, a service charge is levied on the customer for the provision of food and other services in the hotel or restaurant. Customers also pay the hotel or restaurant without question or response, in addition to the service charge. This charge, however, is levied only at the time of transaction and not at the time of service provision.
A portion of the bill is charged. Fee for service
Your hotel or restaurant bill will include a service charge. This is typically a percentage of your bill. The majority of the time, it is 5%. That is, if your bill is Rs 1,000, the 5% service charge will be Rs 1,050.
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