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Friday, July 21, 2017

Issue of service charges being charged by restaurants and hotels

Number of articles have been written on this blog pertaining to charging of service charges by the restaurants. An article titled Are Restaurant and Hotels adapting to unfair business practices? also appeared in this blog on 21/04/2015 the url of which is http://skvirmani-jagograhak.blogspot.in/2015/04/are-restaurant-and-hotels-adapting-to.html

The service charge being charged in the bill by the restaurants and hotels are in one form is like 'Tip". The tip is always considers to be out of its own will whereas the restaurants and hotels are charging compulsorily in the bills and this range from 10% to anywhere around 20% irrespective of whether the service is worth appreciation. While the Gov. of India through Department of Consumer Affairs have issued guidelines for fair business practices, the restaurants are still violating the same guidelines. The guidelines as issued by Department of Consumer Affairs are reproduced below:

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