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Old 17th November 2008, 17:22   #16
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Originally Posted by Eddy View Post
Thats service tax.

Service charge is a money making gimmick by the restaurant.
Im sorry dear Friend, No Part of the Service Charge goes to the Owners.
It is divided on the basis of points alloted to all the staff at the outlet. Its a nice thing since even the cooks, helpers, captains etc get a gratitude then.
e.g.What good is the waiter and service if the quality of food cooked by the Chef is no good?
So its a motivation to all in the Team!
I know of a restaurant in Mumbai which adds a certain percentage of the service charges recovered, and distributes it to the staff!
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Old 17th November 2008, 18:31   #17
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So You got to a restraunt to have a bite to eat. The service is beyond atrocious. You decide today I am not going to pay any TIP for the poor service. Your bill comes in and the line above the total is one line called SERVICE CHARGE. You like most people pay not attention to it pay the amount and walk away thinking you have paid no tip. Take the reverse your service is decent and you pay 10% of your bill. In essence you have just paid over 20% as TIP.

We Levy a 10% Service Charge ! : wandering-online.com
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Old 18th November 2008, 13:52   #18
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As it is, the cost of maintaining a hotel and people is included in the item price. So I dont see a point in hotels charging SC separately. Whenever there is a SC, I do not pay additional tip.
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Old 18th November 2008, 14:53   #19
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Isnt 10% a bit on the higher side? Considering they still get their salaries. 2% service charge is fine i guess.

Is the amount collected as Service charge taxed by the government?
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Old 18th November 2008, 15:01   #20
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If there is a Service Charge levied in the bill then I do not tip unless the service has been exceptional. Otherwise, I tip based on the service, food etc.
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