I work in a restaurant, my service charge comes in my salary slip is this right? If i go on paid leave then service charge can be deducted or not? and is service charge comes under tax levy?
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Mohit,
The service charge is not a tip. Owners of restaurants or hotels collect it for the maintenance of the crockery, cutlery, and other items. Part of the service charge is diverted to employees who actually provided service.
There is no fixed rule for owners to collect the specific percentage of bills as a service charge. Generally, it varies from 5% to 10%.
Owners of restaurants or hotels collect the service charge from the bill. Therefore, it is construed as their income. While disbursing part of this income to the employees, this has to be reflected somewhere. Hence, the payslip is the right means to show the disbursement of the service charge.
The service charge that you earn through a payslip is your income; hence, it is taxable. Service charge is distributed as per the exact attendance, i.e., your weekly off or any other absence is excluded; hence, generally, you should not get a service charge for your leave period. However, service charge collection and further distribution is a convention. There is no rule per se.
Ok...
Dinesh V Divekar
+91-9900155394
From India, Bangalore
Acknowledge(0)Amend(0)
8072The service charge is not a tip. Owners of restaurants or hotels collect it for the maintenance of the crockery, cutlery, and other items. Part of the service charge is diverted to employees who actually provided service.
There is no fixed rule for owners to collect the specific percentage of bills as a service charge. Generally, it varies from 5% to 10%.
Owners of restaurants or hotels collect the service charge from the bill. Therefore, it is construed as their income. While disbursing part of this income to the employees, this has to be reflected somewhere. Hence, the payslip is the right means to show the disbursement of the service charge.
The service charge that you earn through a payslip is your income; hence, it is taxable. Service charge is distributed as per the exact attendance, i.e., your weekly off or any other absence is excluded; hence, generally, you should not get a service charge for your leave period. However, service charge collection and further distribution is a convention. There is no rule per se.
Ok...
Dinesh V Divekar
+91-9900155394
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Paid Leave Record_Master.x ls
ST-Point of Taxation in Service Tax.doc