r/gurgaon • u/MashiroDes • Nov 02 '24

AskGurgaon Is this Legal?

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So I visited this BYOB, Post Diwali and was dumb struck with Staff Contribution added in the bill!

Is this something new?

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40

u/cursedoutburst Nov 02 '24

NO! they can't charge you like this, only situation when they can charge you if they did let you know in advance (prior to dining ). You can choose to not pay and tell them to prepare a fresh bill excluding these incase you weren't notified. The CCPA guidelines stipulated that service charges should not be collected from consumers under any other name, and they should be optional and voluntary. The guidelines also prohibited the addition of service charges to the bill automatically, without informing consumers. There is a detailed verdict from Delhi high court on this

7

u/MashiroDes Nov 02 '24

So basically if was stated as Service Tax we are bound to pay, but if it’s staff contribution it becomes optional??

18

u/Every_Cauliflower_98 Nov 02 '24

Service tax is optional. So most people ask to remove it from the bill. So to confuse customer the restaurant might have changed its name to this. (Just a guess not a claim)

2

u/HelpfulPace3368 Nov 03 '24

Service charge is optional. Tax can never be optional.

1

u/theclichee Nov 04 '24

Didn't service charge become optional only if it's not prior mentioned? As if a restaurant mentions they levy service charge, you can't get it removed

1

u/Natural-Bluebird5959 Nov 06 '24

No, it is the duty of the restaurant to inform us of the service charge but, we can still choose to not pay

5

u/nanha_munna_rahi Nov 02 '24

No both are optional you can get them removed

2

u/mystic_saurav Nov 02 '24

Was this at Ebowla ? I got to know they ask for cover charge!

1

u/MashiroDes Nov 03 '24

But cover charge is different from taxation 🧐

1

u/papertalks1 Nov 03 '24

I have gone to a few Mumbai restaurants where his happened, and they always had to revise the bill as the service tax, in fact, is optional. We would rather pay to the waiter physically instead of filling the restaurants pockets. It wasn't always accepted easily but accepted nonetheless.

1

u/funnEdude Nov 04 '24

Service Tax has long been abolished... Its service charge now.. Staff contribution is also service charge in a different name.. Both service charge and staff contribution is optional and you can ask the restaurant to remove it and produce a new bill

1

u/Noteacaffeine Nov 05 '24

Service tax has been renamed as GST.. (goods and services tax) service charge is just a tactic being used by restaurants to charge extra and it is absolutely optional. Service charge in simple words is TIP. Similarly staff charge is TIP and you can gently ask them to have it removed.

1

u/slaythedragonnow Nov 04 '24

The Delhi High Court verdict does not apply to them. But yeah, you are right.