No hotels or restaurants can add service charge in the food bill: Press Release
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- By Chetan Kulasri
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- Last Updated on 7 July, 2022
Latest from Taxmann
Press Release dated July 4th, 2022
The Central Consumer Protection Authority (CCPA) has issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charge in hotels and restaurants. The guidelines issued by CCPA stipulate that hotels or restaurant shall not add service charge automatically or by default in the food bill.
The Government has issued press release to inform that no collection of service charge shall be done by any other name. No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion.
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