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Service Tax at restaurants optional

Friday, January 06, 2017

Supreme Court judgment terming Service Tax at restaurants optional deserves applause as it comes as a relief for the citizens who were burdened with a whole lot of taxes while dining at eateries. However, this mandatory/optional thing sounds a little confusing and needs clarity.

Supreme Court should not allow restaurants to include Service Tax in the bill. A separate Service Tax bill can be generated if the customer is willing to pay but I guess it is as good as a 'Tip' which should directly be paid to the 'waiter' or the service providers at the restaurants or hotels. Most of the restaurants don't pay the whole amount of Service Tax to service providers like waiters, hotel staff etc and the SC judgment in that sense was appropriate. Tips which we term Service Tax is compulsory in foreign countries and its better if we pay reasonable amount directly to people for whom they are meant!

— S.N. Kabra, Goregaon

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