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HC stays order which asks hotels not to charge service tax 12/12/2016 11:04:03 PM Early Times Report Jammu, Dec 12 : High court judge Tashi Rabstan has stayed the communication which asks hotels not to collect service charge from consumers. The court directive came in the petition filed by the employees of a hotel, seeking quashment of the impugned notice No LM/DC/(Enf)/139-44 of October 26, 2016 and another notice No LM/DC (Enf) 194-200 of November 19, 2016 issued by the deputy controller of legal metrology weights and measures department, Jammu. The counsel for petitioners submitted that they 'are working on monthly salary which is duly covered under Minimum Wages Act. The hotel management has also got petitioners registered under Employees State Insurance Act and Provident Fund. Management is paying regular insurance as also provident fund at the rate of 1.75 pc (ESI) and 12 pc (PF). The management also deposits its share of contribution and the installments are regularly being paid in the petitioners' accounts maintained with the department. The details of wages, employer's provident fund and ESI paid for the petitioners in Form-XVII maintained by the management and the service charge so collected by the hotel management is distributed amongst all the employees at the end of the month. Distribution of service charge is on pro-rata basis, ie equal distribution amongst all staff members'.(JNF)   Share This News with Your Friends on Social Network     Comment on this Story

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