Hotels, restaurents overcharging customers to face the music

Hotels, restaurents overcharging customers to face the music

KATHMANDU, JANUARY 22: The government is preparing to monitor the hotels and restaurants to deter them from cheating on their customers. Regarding this, the Inland Revenue Department, Commerce, Supply and Consumer Protection Department, and Restaurant and Bar Association (REBAN) have lately agreed.

Employees of the said departments will carry out the monitoring of the hotels and restaurants as per the Value  Added Tax (VAT) Act and Consumer Protection Act. In the course of the supervision, if any of them is found to be overcharging the customers in the name of VAT and service charges, it will be penalized. 

The Value Added Tax Rules, 1996 prohibits hotels and restaurants from adding such extra charges to the bill amount. However, many of them are illicitly charging  13 percent as VAT and 10 percent as a service charge while issuing bills to the customers.