Service charge not distributed to workers by restaurants liable to income tax: CBDT – Suraj Nangia
Restaurants and hotels imposing service charge on customers in the name of tips but not passing them full to their employees could court trouble from taxmen. Central Board of Direct Taxes, the apex direct taxes body, has directed its field officials to examine balance sheet and expenditure statement of restaurants and hotels in cases where there is any under-reporting or non-reporting of additional income collected in the name of service charge.
Suraj Nangia, Partner shares his views on aforementioned story for following publications:
CNBC TV 18
(News flashed by PTI has been picked up 65 other news publication like Financial Express, Business Standard, moneycontrol.com, Times of India etc.)Service charge not distributed to workers by restaurants liable to income tax: CBDT – Suraj Nangia