We all love an evening out with our near and dear ones. Every now and then we are inclined to go and eat outside. After looking at the menu and checking the prices we order all the food that we desire. We are aware of the fact that taxes are going to be included in the bill later on.
People are aware of the fact that the taxes are not included in the prices on the menu, but are not aware of what taxes are applied and at what percentage. This half knowledge is taken advantage of by the restaurateurs.
The two taxes that should be there on the bill are:
Many restaurants also add ‘Service Charge’ on the bill which is supposed to be illegal according to an article in Economic Times. As a customer, it is essential to know the difference between service tax and service charges. Why should we be charged extra? In order to make sure that you pay only what is required; you have to be aware of what is right and what isn’t.
Below we are mentioning the meaning and purpose of the added charges/taxes that you find on your restaurant bills. Read them carefully and you decide what you should be paying for and what you shouldn’t.
The Swachh Bharat Cess has become effective from November 15, 2015 at the rate of 0.5 per cent on all taxable services.
The Krishi Kalyan Cess has been implemented from 1 June,2015 and it is being levied at the rate of 0.5% on all taxable services. This cess is levied to collect funds for development of the agricultural industry and for the farmers’ welfare.
With innumerable complaints against restaurants charging “service charge” in spite of bad service, government passed a law in accordance with the clarification gained from the Hotels’ Association that it won’t be mandatory to pay the service charge levied by the restaurant. If a consumer doesn’t like the service, he can now freely refuse to pay the service charge on the bill. If the restaurant retaliates for this action, the consumer can take the case to consumer court and complain against the respective restaurant.
So, next time you visit any restaurant or Book a Banquet, make it a point to go through the whole bill and check whether you are being over-charged and if yes, ask the management why.