Levying no service charges, say Kolkata restaurant owners

KOLKATA: Days after the Central Consumer Protection Authority (CCPA) barred hotels and restaurants from levying service charges, owners of several eateries in Kolkata claimed that they do not impose such a levy.

Noting that levying service charges is "inappropriate" and a ploy to "pinch customers' pockets, the city-based restaurateurs also said this is "counterproductive in a price-sensitive market".

Peter Cat and Mocambo owner Nitin Kothari told PTI that "no service charge" is billed at his restaurants over and above the price of food items quoted in a menu.

"We don't charge anything under the head of service tax. We always try to provide quality service to customers in all our restaurants and never charge anything beyond the rate quoted. If patrons pay any amount as tips to staffers after being satisfied with the service, it is up to them," he said.

Aminia Restaurants sales director Azra Golam said their eateries have never implemented service charges in the final billing.

"A service charge might be a trick to pinch customers' pockets in a price-sensitive market."

Oudh 1590 and Chapter 2 owner Shiladitya Chaudhury claimed his restaurants have never levied service tax because he feels that this is "an inappropriate way of charging customers".

"If customers are happy with our service along with food and consistency in proper guest handling, they will happily pay our stewards. Customers may get annoyed with a service charge as they are well aware of the Goods and Services Tax (GST) that they are paying."

Hotel and Restaurant Association of Eastern India president Sudesh Poddar said the luxury hotels and fine dining restaurants "don't impose anything under the head of the service charge here though their pricing may be different.

He also said that "most of the hotels and restaurants of the city and states don't levy service tax".

On July 4, the CCPA came out with the new guidelines barring hotels and restaurants from levying service charges automatically or by default in food bills.

It also clearly stated what steps consumers can take in case of violation of the guidelines.

Consumers can complain in writing or through electronic mode to the district collectors who are empowered to inquire or investigate such complaints and submit a report to the CCPA Megha Mitra, associated with a film production house, said paying tips to stewards after sumptuous lunch or dinner is voluntary.

"If we enjoy services at a restaurant and we make it a point to keep some cash for those who serve food. So this cannot be subject to scrutiny," she added.