What - If service Charge is mentioned on Menu Card

Hello All,
I have one question regarding service charge in restaurants.
Now a days most of the restaurants/lounge/Pubs etc have started levying the service charge in Pune.
I agree according to guidelines a customer can refuse to pay. But when we refuse, the managers replies are. 1) we have mentioned regarding the service charge at the entry gate (yes they do write it on board) 2) we have also mentioned it in our menu card. So you can go ahead and complaint but you must pay.

My question is Can we refuse to pay the service charge if its already mentioned on menu card as well as at the entry gate of restaurant?

I have gone through many threads regarding this topic but not getting a clear picture

Hotel associations says that guidelines are not law so we can levy the service charge mandatory

If this is now law then under which section or on what base we can file a complaint?

Please advice

Thank you more

Helpful Connected Consumers Jan 23

Viewed by 2012

View all 29 comments Below 29 comments

G. C. Mathur (Convenor-Trustee, Binty (A Voluntary Consumer Organisation), New Delhi)

The Service Charge cannot be charged, even if it is declared by the Company running the restaurant. The State Government must barge in and take action to protect consumers from undue charge. Or, if the Company has obtained any exemption from any competent authority, must mention the same on the signboard outside the restaurant. The local Police may also take action on the basis of this report in the Local Circles, who could also file an FIR. The Department of Consumer Affairs , Govt of India, must not sit quiet on this issue and take up the same with the State Government. more

Mar 22

Balkar Singh

Dhfl in not satisfied because so many time increase interest rate more

Mar 05

R V K BABU

It clear that they are writing on the board and mentioning in the menu card and collecting service charge which is made optional by court of law. How to know/ ensure that they pay tax on that or distribute among the workers/ mention in the accounts. more

Mar 04

S K Virmani (S.K.Virmani (Consumer Empowerment))

1. The service charge even if it is mentioned in the board, menu or any where else cannot be charged compulsorily because of two factors namely one being no service standards are mentioned in the menu and hence will not stand in court of law and secondly by virtue of notification issued by Department of Consumer Affairs. 2. Service charge is not a tax. 3. When the service charge is not a tax and is an optional being tip, it all depends upon the person availing the service and is given out of will and satisfaction. No one can force me to pay this much of amount towards tip. The dishes are already included of the service contribution in cooking, serving, AC and all. The restaurants do reverse the amount of the service charge if told of not being paid. Even if any of the restaurant still ask you to pay the service charge, please pay asking about email id. Come back and send an email asking them to refund. It should service your purpose and if not please file a complaint before consumer forum. One need to bell the cat. Fortunately I have not come across the situation else would have taken the issue before appropriate authorities. more

Feb 04

S K Virmani (S.K.Virmani (Consumer Empowerment))

You may like to complain to the restaurant with a copy to Consumer Affairs Department of the State Government. You have an option to file complaint with consumer forum also in case the restaurant does not refund you the amount. more

Feb 04

Jagadeesh Rayala

I recently visited a restaurant in bangalore that charged me for this. They refused to waive off the service charge even though it is mentioned that it is optional on the board outside. more

Feb 04

H.P. Gurg

This is the forced way of collecting tip. more

Feb 03

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