NEW DELHI: The finance ministry has clarified that service charges collected by restaurants and hotels are not the same as service tax levied by the government Some restaurants, hotels and eateries add service charges in the food and beverage bills, which is retained by them, the finance ministry said."Some of the consumers have a misapprehension that these `service charges' are being collected by the restaurant on behalf of the government as tax," the ministry said."It is clarified that these 'service charges' collected by the restaurantshotelseateries are retained by the restaurants hotelseateries and are not 'service tax' imposed by the government."Apart from the service charge, hotels and restaurants levy service tax and value added tax. The service charge is usually about 10-15 per cent of the bill amount, depending on the restaurant or hotel's policy. "It is clearly written on the menu card that service charge levied is extra.If there is any reservation on paying the service charge, then the customer can always enquire or choose whether to take the service or not," said Tejinder Singh Walia, president of the Federation of Hotel and Restaurant Associations of India, which represents the hospitality industry.The ministry also clarified in the July 14 statement that service tax on providing food or beverages in an outlet with airconditioning or central airheating in any part of the establishment comes to 5.6 per cent of the total amount charged.The government increased the service tax rate to 14 per cent from 12.36 per cent (including education cess) from June 1.Restaurateurs say the service charge is usually decided in conjunction with the staff and waiters. "Many restaurants have this issue of staff not getting enough tips. So, they have an arrangement with the staff and depending on that the service charge is decided," said Kamlesh Barot, former president of the Hotels and Restaurant Association of Western India.