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Regarding service charges collection

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Sourbh Aggarwal

Sourbh Aggarwal (Querist)
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24 June 2017 Hello everyone,
I have a doubt regarding service charges collection by hotels. Is it mandatory for hotels to distribute all service charges to its staff???

Aswath Raman

Aswath Raman (Expert)
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26 June 2017 The collection is based on the assumption that SC is in lieu of "tips". It is expected that it will be disbursed to the employees. I could not find any statutory requirement to do so.

Sourbh Aggarwal

Sourbh Aggarwal (Querist)
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26 June 2017 Means hotel can use such amount for own purpose.

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