Restaurant Bills Explained – 2016 Version

Service Charge, Service Tax, Value Added Taxes – We bet they have got you all confused. Here is a layman’s guide for understanding & making sense of our Eating out bills.

Menu prices may seem very deceptive once you get the final bill in hand. Suddenly there is a barrage of taxes and charges staring in your face which you cannot make any sense of, however still are supposed to pay. Here is a guide that we have put together, which may help you in making any semblance of your eating out bills.

Difference between Tax and Charge

Charge is not fixed by anyone and outlets are free to write whatever percentage they deem fit on the menu. You can protest against it sure – if you do it before eating, it would be like haggling for the price of food and if you do it after eating it’s similar to you refusing to pay the bill if you are not satisfied with it. Service Charge is the most common charge applied in India and ranges from 5 – 15% of the total bill, 10% being the most common number in industry. Charge is something which is part of the revenue of the restaurant – what they do with it is their prerogative.

Continue reading “Restaurant Bills Explained – 2016 Version”