Tag Archives: Hotel and Restaurant Association of Western India

The Hotel and Restaurant Association of Western India (HRAWI) recently organised a seminar on direct taxes for its members in Mumbai. Addressed by Anil Harish, an expert in tax matters, the seminar enabled the hoteliers and restaurateurs to understand implications of the Union Budget, introduction of new policies, and the taxes levied among others. The seminar also specified the Government’s investment plans for allied sectors such as infrastructure, agriculture, education, and tourism, and discussed concerns regarding overlapping taxes. Dilip Datwani, President, HRAWI says, “Taxes form an important and integral part of any establishment. The seminar was conducted in order to brief our members and clarify their doubts on the proposed taxes in the Union Budget 2017-18 and its impact on the hospitality sector. Besides this, there were a lot of queries from the food and beverage operators regarding GST. The seminar in many ways proved to be an eye-opener for the attendees. We are glad to get such positive response from the members and plan to conduct more such seminars frequently in future.”

In the wake of a statement issued by the Department of Consumer Affairs on Jan 02, 2017 implying Service Charge billed by restaurants are optional, the Hotel and Restaurant Association of Western India (HRAWI) has come out with a clarification to all industry stakeholders. In a letter to the Department of Consumer Affairs, the Federation of Hotel and Restaurant Associations of India (FHRAI) the apex body of hotels and restaurants, has appealed for withdrawal of the advisory as it has been creating chaos and disruption in the smooth functioning of restaurants across the country. The association has clarified that there is nothing illegal about levying the fee and has citied judgements by the National Consumer Disputes Redressal Commission, New Delhi which is the highest consumer forum of the country as well as by the Hon’ble Supreme Court, which have upheld the legitimacy of this practice. The association has pointed out to cases in which the practice of levying a Service Charge has been upheld by the law. In one of the cases, the National Consumer Disputes Redressal Commission, New Delhi in Nitin Mittal vs. Pind Baluchi, (2012) NCDRC 444 the Association has been advised that such a practice is not an “unfair trade practice” within the Consumer Protection Act. In another case, the Hon’ble Supreme Court too has specifically acknowledged the practice of including “service charge” in the bill by hoteliers and other cases in lower courts which too have recognized the practice. “Service charge is the amount paid to the staff of the restaurant or other similar establishments. An establishment may choose to include this amount in the bill itself and the percentage may vary from 5 per cent …