Article Tax, charges increase your restaurant bills by a third

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Taxes and charges

Every restaurant is free to levy any amount as service charge. “Restaurants charge service charge at will. There are no rules governing this charge,” said Archit Gupta, chief executive officer and founder, ClearTax.in. Most restaurants charge 10% of the bill amount as service charge, which can be considered as tip. “It is not a statutory levy and may be charged by a restaurant depending on its internal policies,” said Tanushree Roy, director, Nangia & Co.

But what if you did not like the service, do you still have to pay the service charge? Mostly yes, because service charge is printed on the menu and thus a customer is intimated about it in advance. Considering the above example, service charge at 10% would be Rs.600 (10% of Rs.6,000).
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Tax, charges increase your restaurant bills by a third - Livemint
 
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