‘Service charge is voluntary’

Hotels, restaurants to put up notices saying service charge is not compulsory

April 03, 2017 01:05 am | Updated 01:06 am IST - New Delhi

NEW DELHI, 15/11/2016: People enjoying food at Saravana Bhavan, in New Delhi on Tuesday. 
Photo: Sushil Kumar Verma

NEW DELHI, 15/11/2016: People enjoying food at Saravana Bhavan, in New Delhi on Tuesday. Photo: Sushil Kumar Verma

The Delhi government has asked all restaurants and hotels to put up notices stating ‘service charge is voluntary’. In January, the Union Ministry of Consumer Affairs, Food and Public Distribution had said that service charge on food bill wasn’t compulsory and that customers could ask for it to be waived if they weren’t satisfied with the experience.

However, complaints about restaurants and hotels still including service charge in the bill kept pouring in. “The Department of Excise, Entertainment & Luxury Tax has issued instructions to hotels and restaurants in the city, asking them to display at appropriate places on their premises that service charges are discretionary and voluntary,” said a senior government official.

“A customer, who is dissatisfied with services, can have it waived,” he added. The official, who said strict action would be taken against violators, added that consumers can complain against “unfair trade practices”.

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