<h1>Clarification: Service Charges in Bills Are Not Government Taxes; Actual Service Tax for AC Eateries Is 5.6% of Total.</h1> Restaurants, hotels, and eateries often include service charges in their bills, which are retained by the establishments and not collected as a government-imposed service tax. There is a common misconception among consumers that these charges are government taxes. The actual service tax applicable to air-conditioned or centrally heated dining establishments is 5.6% of the total bill amount, calculated as 14% of 40% of the total charge. This clarification aims to differentiate between service charges and government service tax to avoid consumer confusion.