Ohri’s Fined Rs5000 For Levying Service Tax

Hyderabad: Ohri's group of hotels, city's famous restaurant chain was asked to pay Rs5,000 compensation for levying service charge on its customers.

The district consumer forum directed the group to not only pay the fine but also to refund the amount collected from a customer as a service tax. The customer Vijay Gopal had visited the Ohri's 100° hotel at Shilpakala Vedika where he was charged Rs213 towards service tax.

Based on the complaint filed by the customer, the forum told the restaurant directors not to collect the service charge from customers in the future. The forum also stated that the restaurant has no legal right to collect service tax at 10% of the bill and it also asked the hotel to leave the option of paying or not paying the tax to the customers.

On hearing the arguments of the Ohri's and the complainant, the forum asked the restaurant to pay Rs5000 compensation. Besides the fine and refunding the money, the forum also asked the hotel to pay Rs1000 for the complaint cost.