Centre To Soon Come Up With A Robust Framework To Check Service Charge Levied By Restaurants And Hotels


Service Tax in Restaurant: Taking service tax in restaurant food bill is unjust and unfair trade, the government will soon issue a guideline in this matter. Today a meeting has been held between the government, restaurant association and consumer organizations regarding this matter.

The Center will soon put in place a strong framework to check service tax levied by restaurants and hotels. The Department of Consumer Affairs (DoCA) will soon bring in a robust framework to ensure strict compliance by the stakeholders with regard to service tax levied by restaurants and hotels. The reason behind this is that service tax adversely affects the consumers on a daily basis.

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DOCA called a meeting

The department today held a meeting with restaurant associations and consumer organizations on levying service tax in hotels and restaurants. The meeting was presided over by Rohit Kumar Singh, Secretary, DOCA. The meeting was attended by other associations including National Restaurant Association of India (NRAI) and Federation of Hotel and Restaurant Association of India (FHRAI).

Arbitrary Service Tax Unreasonable

During the meeting, issues related to service tax of consumers were raised. Issues like compulsorily levy of service tax discussed, addition of service tax without the consent of the consumers were included. The consumer organizations observed that the levy of service charges is completely arbitrary and unfair under the Consumer Protection Act.

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