Bengaluru: You have had a hearty meal, paid a hefty bill with Service Tax, Value Added Tax and even Service Charge. Having paid a Service Charge, you decide not to tip the server. You thank the server and leave.
But, the server may not thank you in return, as the money you pay as Service Charge will most likely not reach him in full.
Service Charge is kept by the restaurant and is supposed to be distributed among the staff. But, those working in restaurants say a part of the Service Charge is retained by the management to cover for breakage of crockery and other such expenses.
"Our hotel charges 10 per cent as service charge. The management retains around four per cent and distributes the rest every 10 days. The percentage differs based on the seniority of the staff," says the manager of a well-known restaurant.
N. Vasudevan, president, Hotel Employees Federation of India, says service charges must continue. "We have been campaigning for Service Charge in hotels and restaurants throughout the country. If government decides to scrap it, it would be a huge loss to workers. However, there is a problem. Restaurants that include Service Charge do not give the entire amount to employees. Also, only a section of workers get the amount."
At the same time, customers are unhappy with the inflated bills.
"Service Charge is absurd and arbitrary. A customer is supposed to tip depending on his/her level of satisfaction. But, most big restaurants shove Service Charge in your face. As many people are not aware about the concept of Service Charge, they don't question it. The government needs to clearly inform people that customers can negotiate the Service Charge and even refuse to pay the same. Restaurants are taking advantage of people’s ignorance," says Waseem Memon, a frequent restaurant-goer and the founder of Foodie of Bengaluru, a Facebook group with over 44,500 members.