The exact Finance Ministry notes
"Some restaurants/hotels/eateries besides charging for the food and beverages are also charging 'service charges' in their bills. The proceeds of the 'service charges' are retained by the restaurants/hotels/eateries,"What exactly is the service charge?
- The actual service charge is 14% on 40% of the total bill - this applies when the restaurants does not include service charges in food bills separately.
- 14% on 40% of the total bill - 5.6% of the total bill.
- The service charge applies to restaurants restaurant having air-conditioning or central heating.
Some restaurants does not include service charges in the food bill and they charge it separately. Off late, there has been a numerous complaints with regarding to the inflated bills in some restaurants as the final bills zooms northwards.
I think such restaurants should report that the cost of the food does not include service charges in their menus to avoid confusion.