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To Discourage the Concept of Service Charge in Restaurants, Govt. Comes up with a New Idea
September 15, 2017
Earlier this year, the government had issued guidelines stating that paying a service charge at restaurants is not compulsory for the customers. When that didn’t help, the government directed the restaurants and hotels to put up notices that inform the customers about the optional nature of the service charge payments. However, most of the restaurants and hotels are still charging their customers the service charge. To fix this problem, the Consumer Affairs Ministry has now asked the Central Board of Direct Taxes (CBDT) to consider service charge as income for tax returns assessments.
