Clarification on Service charges collected by the restaurants / hotels/ eateries - These charges are not 'service tax' imposed by the Government.

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..... Clarification on Service charges collected by the restaurants / hotels/ eateries - These charges are not 'service tax' imposed by the Government.
News and Press Release
Dated:- 14-7-2015

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..... >Some restaurants/hotels/eateries besides charging for the food and beverages are also charging 'service charges' in their bills. The proceeds of the 'service charges' are retained by the restaurants/ .....

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..... hotels/eateries. Some of the consumers have a misapprehension that these 'service charges' are being collected by the restaurant on behalf of the Government as tax. It is clarified that these 'ser .....

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..... vice charges' collected by the restaurants/hotels/eateries are retained by the restaurants/hotels/eateries and are not 'service tax' imposed by the Government. It is further clarified that effective .....

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..... service tax rate in respect of services provided in relation to serving of food or beverage by a restaurant, eating joint or mess having the facility of air-conditioning or central air-heating in any .....

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..... part of the establishment is 5.6% (14% of 40%) of the total amount charged.
News - Press release - PIB .....

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