Complaint Details

Status	:	Closed
Complaint No	:	0002636/2012
Category	:	Food & Beverages
Date	:	07-12-2012
Subject Line	:	Service Tax on Total Amount while Billing
Complainant	:	Varun Deepak
Address	:	Gokulam Apartments, Avvai Nagar, Lawspet
Complainee	:	Pizza Hut
Address	:	4, Bussy Street

Complaint Details
We were billed at Pizza Hut, Pondicherry for dining on 06.12.2012, around 10:00 pm and to my surprise I was charged a service tax of 3.70% to the total amount rather than for charging service tax for service charge alone. When asked for explanation, the Branch Manager argued that this is an MNC, they know the rules better and the bill generated from it cannot be modified whatsoever. He asked us to file a complaint in the police station regarding this issue after paying the bill amount, if this is to be sorted out. I argued that I might pay the service tax for service charge alone and he might give a police complaint on me if I was wrong. He threatened me that he would call the police and never called them whatsoever. He then called his superior and enquired whether service tax is applicable only for service charge or for the entire amount. He told us that his superior (whom he contacted) explained that the service tax was a liquor tax which the Pondicherry government charges and the name is coined as service tax in the bill due to space constraints in the bill. He also added that the liquor tax (service tax as mentioned in the bill) is applicable for every restaurant providing liquor irrespective of whether the customer takes liquor or not. Then the branch manager informed us that there are complaints from customers regarding this (service tax on total amount) issue and that e-mails have been sent to competent authority for rectifications. He also gave us one such copy of an e-mail which states the Pizza Hut authority mentioning that “service tax being charged on total amount is as per law” which is attached with this complaint. I don’t think the service tax they mentioned is an alternate name for liquor tax or service tax could be calculated on the total bill amount which includes service charge also. Please find attached bill cum payment receipt for the dining which I had on 06.12.2012 at Pizza Hut, Pondicherry and the e-mail which the Branch Manager gave me stating that service tax charged on total amount is lawful. I finally made the payment on the bill after the Branch Manager, Pizza Hut Pondicherry showed me the e-mail and his arguments on the issue. I was also forced to pay the bill as the Pizza Hut personnel made a big scene there in the restaurant. Kindly give us a suitable reply for this complaint and also take necessary action at the earliest. We want you to keep us also informed on the steps taken on this complaint. Thank You.

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