charge by hotels as income while assessing tax returns: Consumer Affairs
Consumer Affairs Ministry has asked the Central Board of Direct Taxes to
consider service charge by hotels and restaurants as income while
assessing tax returns. At present, some hotels and restaurants are levying
service charge in the range of 5 to 20 per cent despite the government's
guidelines to make levy of such charge as optional.
Consumer Affairs Minister Ram Vilas Paswan said in a tweet that renowned
hotel and restaurants have complied with the guidelines, but complaints
are still being received through the National Consumer Helpline about
service charge. He said, hotels and restaurants have been asked either to
leave the column of service charge blank or mention on the bill that it is
optional. Guidelines to hotels and restaurants for not levying service
charge were issued in April.