Customers Can't Refuse To Pay Service Tax After Dining: Restaurant Association

How many times have you asked the restaurant to drop off the service tax? Well, you might not be able to do that anymore it seems. National Restaurant Association of India has said that a customer cannot ask the service tax to be dropped after consuming the food served in the restaurant. The service tax is not a hidden charge that is levied on customers without them knowing it.

Customers And Restaurant Get Into A Contract With Every Order

National Restaurant Association of India has said that if a customer makes a purchase in a restaurant, there is a contract that exists between the restaurant and the customer where the restaurant offers to provide the food on the menu upon placing the order. The customer will then have the option of accepting or rejecting the offer of the product price plus the service charge. Restaurants display the service charge on their menu cards and also on their premises, and it is not illegal to do so.

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Levying Service Charge Is Beneficial For Labour

Service charges which are levied in restaurants are for the benefit of the workers. It is also a source of income for the government as taxes are paid by restaurants on them. The associations’ spokesperson said that the charges which are levied are totally transparent and worker-friendly which is why they should be continued. There is a lot of confusion among people which in turn is affecting the smooth operations of restaurants. The tax was introduced to keep the unstable tipping at bay.