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What is service charge in your restaurant bill ?

know more about your restaurant bill

These days taking family to week end in a good restaurant to enjoy a dinner is very common among city dwellers. Many people like to enjoy a buffet and many alacarte, whatever the way you like to enjoy the food have you ever check your restaurant bill carefully. This is not end as before leaving we used to provide tip to maintain the basic restaurant etiquette. Now here without knowing the fact many of us are paying extra tip as the same is already included in your restaurant bill. Yes, that’s why you have to understand your restaurant bill and not to feel awkward while not providing any tip in your next dinner or lunch.

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Impact of Service Charge in Restaurant bills 

Let’s decode the restaurant bill in a clear manner. Generally most of the restaurant food bills have below 3 components to make the final bill

  • Service Charge ( 4 – 10 % ) 
  • Service Tax (around 5 % )
  • VAT ( 12.5% )

Now among these 3 charges only Service Tax and VAT are the common name that you might heard and we are used to pay them as they are from Govt rules. But what is this other one Service charge doing in this bill and eating 10% of my money.

This service charge is the amount that restaurant is charging to provide various assistance to customers by taking order, serving food and any other service. The limit of putting service charge is 4-10%, but in most places you will find that they are charging 10%. And restaurant owner has to mention about this service charge in the menu, otherwise they can not include the same in the bill. So, now when you enjoyed a dinner of Rs 1000 most of the time you may give a tip of 20-50 depending on people. But in reality you have paid more than 100 Rs as tip in the bill already. 

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So no need to feel uneasy or awkward by not paying the tip as you have already paid a mandatory tip which might be even more what you are planning to give. I would like to hear from you any experience related to this experience or topic.

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What is service charge in your restaurant bill ?
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