Toons
Arch-Supremacy Member
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service charge amount is dependable on the amount of the food prices. and gst is based on the subtotal of service charge + food price.
hence by right they are hand in hand, except that service charge is optional chargeable by the eatery.
i found the exact one. you can show those 2 restaurants i suppose..
since they charge u 50% of the food price only, the service charge should based on the discounted price too.
https://www.iras.gov.sg/irashome/page04.aspx?id=2166
Yea, i did a bit of browsing n it does seem like service charge is actually an optional charge that the restaurants can choose to impose. This explains why some restaurants can opt not to impose a service charge. Also, the reply by IRAS stated 'You may impose a service charge (usually at 10%) based on the price of goods and services that you provide'. Note the use of words 'may' and 'usually at 10%'. This is not a legalistic reply, so 'may' != must
Since it is an optional charge not mandated by law, restaurants thus have a lot more leeway on it ... whether they want to impose it, n even how much to impose Becos of this, restaurants can actually get away with imposing the service charge on the full price rather than the discounted price ... as long as they charge GST on wat is actually paid, which is the service charge (regardless based on full or discount price) n the discounted price.
As for GST, its clear cut lar. If you encounter those merchants who charge GST on full price even though they are charging a discounted price, then just complain to IRAS lor. Your first link already said that the merchant is at fault n that consumers can get a refund.