Every one visits restaurants for various reasons and various occasions. However after the meal is served and the bill is given, how many of us check the bill? How many know what is the various charges charged by the restaurant? And how much tip to pay?
Apart from the cost of the food, restaurants usually charge the following:
1. Service Charge
2. Service Tax
3. VAT (Value Added Tax)
Though some restaurants may not charge all or any.
Let us understand these components of the bill one by one. This time lets understand service charge.
Service charge is charged by the restaurant for rendering its services to you. This money goes to the restaurant and not to the Government, unlike in tax payment. The establishments are free to charge any amount as service charges as there are no guidelines provided by the tax authority on this. The charge varies from 5 to 10 per cent of the billed amount before taxes. Few restaurants don't charge it and then you may want to tip the waiters. If you are charged service charge in the bill, then you need not pay tips as this charge is supposed to be shared among the staff which include waiters, chefs and cleaning staff. The percentage is usually fixed by the restaurant
Most of us don't bother or question even when we feel the charges levied are on the higher side. Reason being, we think nothing can be done about it and secondly we don't want to spoil an outing with family and friends arguing with a manager.
However, if the menu doesn't mention service charges then you don't have to pay and have every right to question the restaurant. Remember penny saved is penny earned.
So next time you enjoy your meal, ensure that you go through your bill as well.
Happy eating out!!!
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