Dissatisfied customers can demand service charge not be levied: Government


New Delhi, Jan 2 (IANS): Customers dissatisfied with service at any hotel or restaurant can opt to seek that service charge not be levied, as this is optional or discretionary as per the Consumer Protection Act, an official statement said on Monday.

The Department of Consumer Affairs, in a statement, also asked state governments to advise hotels and restaurants to disseminate information, such as through displays, that "the service charges are discretionary or voluntary".

The department said that it received complaints from consumers that many hotels and restaurants charged "service charge in the range of 5-20 per cent, in lieu of tips" and consumers were "forced to pay irrespective of the kind of service provided".

A clarification was sought from the Hotel Association of India, which replied that the "service charge is completely discretionary and should a customer be dissatisfied with the dining experience, they can have it waived off", as per the department.

The department have also asked the state governments to sensitise the companies, hotels and restaurants regarding provisions of the Act.

  

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Comment on this article

  • Elwyn Goveas, Valencia

    Tue, Jan 03 2017

    For keeping health well one should try to eat home made food avoiding hotel foods.There are chances of food contamation due to unhygenic practices followed at many hotels.Also the nutritional value of food may get degraded due to malpractices.

    DisAgree [2] Agree [2] Reply Report Abuse

  • Shankar, Mangalore

    Tue, Jan 03 2017

    I thought the exorbitant charges like sixty rupees for a small bowl of steamed rice, included the costs of service!!

    DisAgree Agree [3] Reply Report Abuse

  • Shekar Moily Padebettu, Udupi/India

    Mon, Jan 02 2017

    In the first place why customers should demand for service charge not to be charged. Customers do not have the voice once he or she enters the hotel or restaurant to dine or to have breakfast. They have to oblige for whatever tax hotel owners are charging for their shabby service.
    Instead of asking customers not to charge service charge if they are dissatisfied with the service, hotel/restaurant owners should stop levying service tax from their end. Charging service charge in lieu of tips is a mean practice to burden the customers. Here question of “Optional” does not arise. It is the complete responsibility of hotel owners, not the customers.

    DisAgree Agree [11] Reply Report Abuse

  • ruchir agarwal, mangalore

    Mon, Jan 02 2017

    Is it not the duty of every hotel/restaurent to provide good food/service ? then why this service charges . As it is hotels have more than 200% net margin and they can well absore service charge/Tips

    DisAgree Agree [10] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Jan 02 2017

    What about dissatisfied voters ...

    DisAgree [6] Agree [8] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Mon, Jan 02 2017

    Good move by the Govt. Fleecing will be stopped now

    DisAgree [1] Agree [5] Reply Report Abuse

  • Mohammed, Mulki

    Mon, Jan 02 2017

    Good move. We never knew that , it was a discretionary tax.

    DisAgree Agree [1] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Mon, Jan 02 2017

    Friends, just don't get excited. Vat, Service Tax and Luxuries Tax are still there, whether the service is poor or good.

    DisAgree [1] Agree [5] Reply Report Abuse


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