- Paying service tax hotels is not mandatory in state hotels
- If forced by hotels, customers can approach the consumer forum
Next time, when you dine out, you need not worry about the unreasonable service tax that hotels impose on your bill. For, in tune with the Central government's decision, the state government will soon issue an order to this effect, reports Kannada Prabha. The hotels cannot deny service to the customers if they do not pay the service tax.
Following complaints from consumers that hotels and restaurants were charging service charge from 5-20 percent, the Department of Consumer Affairs issued a notification to make service charges voluntary payment in all the states. The customers have to pay the service tax irrespective of the kind of service at hotels.
Even in the state, many hotels in the state especially the luxury hotels levy service tax from 6 to 8 per cent. But now, as per the 1986 Consumer Protection Act, hotels cannot charge service tax on customers. Customers can approach the consumer court if the hotels demand service tax or deny service for not paying the tax.
Last Updated 31, Mar 2018, 6:49 PM IST