Drop everything and listen to this. 2017 is only a day old but the new year has begun to spun its magic and it’s going to reflect on your bills (plus your pocket).
While our beloved PM might have played a cruel joke yesterday and unfriended the entire nation, another MP has got his new year resolution right!
In a commendable call, the government has released a statement asserting that people who dine out may or may not pay the exorbitant Service charge claimed by restaurants depending upon the service. Consumer Affairs and Food Minister, Ram Vilas Paswan tweeted,Â
Restaruants are billing service charges in addition to taxes. Service charge is optional . Consumer has a discretion to pay or not.
— Ram Vilas Paswan (@irvpaswan) January 2, 2017
The discretion comes as a relief, at a point where the taxes almost pinch pockets of commoners.
The statement also clarifies that the service charge -which ranges from 5 to 20 percent and is added to bills instead of tips – cannot be mandatorily applied. The Hotel Association of India has confirmed it saying,
“The service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily.”
Read the entire statement issued, here:
 A number of complaints from consumers have been received that hotels and restaurants are following the practice of charging ‘service charge’ in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him. The Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices. In this context, the department of Consumer Affairs, Central Government has called for clarification from the Hotel Association of India, which have replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily.
The Department of Consumer Affairs has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also to advise the Hotels/Restaurants to disseminate information through display at the appropriate place in the hotels/restaurants that the ‘service charges” are discretionary/ voluntary and a consumer dissatisfied with the services can have it waived off.
So, what are you waiting for? Go splurge, dine and everything fine. Without a pinch!
News Source: NDTV