Services charges not mandatory: AHAR

Mumbai: While the Central government on Monday said that one can refuse to pay the service charge in restaurants if not satisfied with the service, the Association of Hotels and Restaurants (AHAR) has claimed that it was never mandatory for consumers to pay the service charges and consumers can refuse to do the same if asked.

Adarsh Shetty, AHAR president, said, “Though the Centre may have clarified that service charge is optional, it was never a compulsion (for diners) to pay up for service charges and the same is also mentioned in the menu of the restaurants, which makes it clear that it is an voluntary payment.”

The department of consumer affairs had also sought a clarification from the Hotel Association of India, which in response said that the service charge is deemed to be accepted voluntarily.

The central government also directed the state government to sensitise companies, hotels and restaurants in the respective states regarding the same and asked the state government to advise hotels and restaurants to display the information at appropriate places in the hotels and restaurants about service charges being voluntary and how any consumer dissatisfied with the service can refuse the same.

Vikas Bhatt, a Borivali resident, said, “The Centre has clarified that service charge is voluntary and the one can decline to pay it; but the onus also lies on the restaurants owners as to how the display information about the same to consumers. However, I was unaware that it is voluntary and thought it is charge that has to be levied by restaurant owners and pay to the government as tax.”