Service charge

rajasthan: Paying service charges is the prerogative of customers : Industry | Jaipur News

JAIPUR: The majority of restaurants in Rajasthan do not charge service fees, which has become a persistent issue between the industry and the Center in recent days. But there are some that charge around 7% of the bill.
As the Union Consumer Affairs Department raised the issue in response to complaints that charging is not legal and that restaurants should end the practice, large swaths of the food industry catering here have stated that if customers do not want to pay it, the charge should be removed.
“It’s like a tip that the customer gives to the staff of the restaurant that serves him. But the majority of hotels in Rajasthan do not add a resort fee to the bill. Those who do should take it off the bill,” said Kuldeep Singh Chandela, chairman of the Rajasthan Hotel and Restaurant Association (HRAR).
According to the restaurateurs, the fee collected is redistributed to the staff. That is why it is also called beneficial load. The charge is in addition to other routine taxes paid to them.
Varun Behl, promoter of a leading restaurant chain in Jaipur, said: “Some restaurants in Jaipur add around 7% to the bill in service charges. Restaurants pay a service charge tax. This way, customers don’t tip directly to the staff. In many countries, this fee exists. Even in cities like Mumbai and Delhi, the service charge is added to the bill.
Behl said it’s a way to keep staff motivated, which translates into better hospitality services provided to customers. “Often they work beyond their hours, especially when customers overstay their meal times. People tip, but it’s a transparent way,” Behl added.
The Department of Consumer Affairs has previously said that the tax impacts consumers on a daily basis and has significant ramifications on consumer rights, the department felt it necessary to examine it more closely and in detail.