Service tax controversy: When a fight breaks out at a Delhi bar, patrons and restaurateurs take note

A fistfight broke out between patrons of Darzi Bar in Connaught Place recently over a service charge. Delhi’s restaurateurs and foodies argue over whether or not to accept it.

At Darzi Bar & Kitchen in Connaught Place, it was simply another evening until a fight broke out between a customer and the general manager over the payment of service tax. The two can be seen fighting and yelling insults at one another in a video that has gone viral on the internet.

According to the restaurant’s general manager, Devinder Singh, “We waive off service charge, if the customer isn’t using another app to avail a discount.” We cannot lose money by deducting an extra ₹300 from a bill that already has ₹1,200 deducted.

In an already competitive market, service fee levies are a comfort for restaurateurs. “To draw customers, restaurateurs must rely on outside platforms and pay a commission for this service. Therefore, service fees are essential to maintaining the restaurant’s profit margins, according to QDs director Akhil Malik.

Customers believe they have discretion over service charges. Any savings we may receive on a third-party app is completely negated by the taxes and service charge combined. “It’s my freedom to select,” declares Gurugram-based software developer Alok Shukla. “In the food industry, there should be one price — MRP, which restaurateurs must put up on their menus to indicate all-inclusive charges,” agrees food blogger Pawan Soni.