Monday, January 27, 2014

Service tax and service charge

Today i saw in the paper, consumer court awarding one person damage where one restaurant charged him more as service tax. And I came to know one thing that restaurants can charge service tax only on 30% of the bill, because rest is considered raw material..but how many of us can contest or protest.

Recently I had dinner at one of the premium pizza restaurant in Phoenix mall, they charged service tax on the full amount( as far as I can remember) and then service charge also which was quite hefty amount around 5...600/..and when we demanded that service charge should be voluntary, they didnt agree..and though govt. has made a rule that packaged drinks or any item cant be sold for more than the MRP..nowhere you get at MRP..sometimes its thrice of that.....

I think govt. must look into billing of all the restaurants specially the upmarket ones, because its they who are fleecing the customers.Some people may say that we must boycott them, but practically it is not possible, because most of them  are doing it, secondly its what we appoint the govt. for.

6 comments:

Jeevan said...

I quite agree! Govt. must regulate the tax consumption... The taxes are hideaway from the price tag and make a silent hole in the consumer’s pocket.

harman singh said...

its basically awareness that needs to be there once person cannot do anything .. hike in prices or being overcharged its a Flaw,, and one can overcome by awareness only!

Renu said...

Jeevan: govt is so inactive in certain spheres...

harman singh:I am aware, but even then I am not able to do anything..they dont listen to us..

Asha said...

oh yes, when we raise our voice against such concern, we are treated as scene makers.

Gouri Guha said...

how much aware we be, we are trapped in this dispute.

Gouri Guha said...

how much aware we be, we are trapped in this dispute.