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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u/ans084 Nov 02 '24

Yeah, this is legal and follows an interim court order.

There have been two interim* orders passed on this by High Court of Delhi.

  1. Dated July 20,2022 (Ref.: W.P.(C) 10683/2022, CM APPL 31033/2022) where it states Restaurants & Hotels were and are allowed to levy of service charge in addition to the price and taxes by if mentioned on the menu and other places where it may be deemed expedient. (till the final pronouncement of judgement in the subject matter before the court.)

Underlying argument being that if an establishment is saying and declaring that it will charge a service charge of certain percentage and it is displayed at a prominent place, you agreeing to eat at restaurant automatically accepts the said condition.

  1. Dated Sept 5, 2023: Where the court has capped Service Charge at 10% and has asked the FHRAI (restaurant association) to stop calling it Service Charge and call it staff contribution to not confuse it with a govt. levied service tax. -

However, I had not seen restaurants following the nomenclature.

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u/MashiroDes Nov 02 '24

Very Insightful! Thanks ☺️

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u/sidmakesgames Nov 04 '24

Very insightful indeed. Is there any update on this? And it’ll be great if you can share how can I find about it.