Time to say goodbye to service charge.

Time to say goodbye to service charge.

Chandigarh-9-March,Sh. Ajit Balaji Joshi, IAS, Deputy Commissioner, UT, Chandigarh has announced today that there would be no service charge on food bills that hotels and restaurants are levying on consumers as it is not backed by any statute.
At present, several restaurants and hotels in Chandigarh at their will are charging service charge on their total food bill. There is no law in the country, which has allowed levying of service charge.
Sh. Ajit Balaji Joshi, IAS, further stated that by levying service charge, the restaurants are putting additional burden on the consumers, who already have to pay taxes in the form of value added tax (VAT) and service tax. To bring this to an end, Chandigarh Administration has assured that strict actions will be taken if any customer is forced to pay any extra charge in the pretext of service charge.

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