Are you a food lover? Do you worry about paying service tax every time you go to a restaurant? Don’t worry because the Narendra Modi led government has asked hotels to remove the service tax. You will soon be able to enjoy your food without worrying about paying a big fat amount. The Union minister Ram Vilas Paswan told sources that service tax is a tip and not a tax. Ram added saying, “An advisory has been issued to restaurants to remove the service tax since it is not a tax, but a tip.”
The Union Ministry of Consumer Affairs, Food and Public Distribution had mentioned that service tax is not mandatory and a customer could refuse to pay if they weren’t satisfied with the service. Earlier this month, the Department of Excise, Entertainment and Luxury Tax instructed hotels and restaurants to display a notice on their premises saying service charge is voluntary.
The Consumer Protection Act, 1986 provides protection to the interests of the consumers and settle disputes for the matters connected to the same. So, remember you have an option to not pay a service charge if you are not satisfied with the service.
