How My Eating Habits [at Pizza Hut] Are Making My Country Rich and Literate?

by Vinaya HS on May 18, 2011

in Finance

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I wonder who’s managing the books at Pizza Hut. I haven’t seen any other food chain levy the myriad forms of charges and taxes that Pizza Hut does. You really need to carry much more cash than you think is necessary because here’s what happens after you’ve eaten:

  • You’re first billed a compulsory and fixed Service Charge at 10% of your bill amount. I assume that you need to pay this Service Charge even if the Chef burns your pizza and the Waiter then comes along and pours a whole jug of Pepsi on your head. I’d rather walk-up to the kitchen window, collect my food, and avoid the Service Charge. But that’s just my wishful thinking. And how on Earth did Pizza Hut arrive at this linear correlation between service and service charge?

  • You’re then billed VAT at 14% and that’s post the Service Charge. I don’t see what value is added in bringing food from the kitchen to your table. I’m OK with VAT on the food prepared (there’s some value added in converting the raw ingredients into their edible equivalents) but not on the service (unless the Waiter wears a costume and does a dance on the way to your table).

  • You’re then billed Service Tax at some-weird-percentage on God knows which line-item on the bill. See if you can figure this out from the sample bill (link below).

  • You’re then billed Cess at 2% on the Service Tax.

  • You’re finally billed Education Cess at 1% on the Service Tax. There you go! I just paid 8 paisa yesterday towards enhancing literacy levels in India.

Thankfully, the charges and taxes end here.

Click here to download an actual Pizza Hut bill.

Eat at Pizza Hut. Make India rich and literate. What else can I say?

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{ 7 comments… read them below or add one }

Sandriano May 18, 2011 at 5:00 PM

When VAT was introduced, we were told that it would replace all other existing taxes like the Service Tax. We were also told then that subsequently the amount of tax would be reduced down the line by introduction of VAT. But the government, as is its wont, has least bothered to implement the VAT in the right earnest and as a result, the merchants are taking full advantage of it by indiscriminantly applying all possible taxes.

Infact, as pointed by you, there is no VAT applicable on Service Tax. But the same has been done on your bill. I am pretty sure that Pizza Hut is pocketing that extra money.


Atul May 23, 2011 at 3:58 PM

My visit to Pizza Hut, ITPL,Bangalore was the first and last one. When I saw the bill and the charges I was spellbound. I checked with the cashier and he had standard reasons for explanation. Nothing convincing BTW.

Forget about Pizza hut there are other chains who will make fool of you and in turn rob you.



Suhaasi May 25, 2011 at 12:44 PM

Would like to add one more item to your bill.
Last year, they would add Rs 10 to charity without asking you.
The tables would display cards which advertise about this, (your mistake if you dont read the cards).
I half expected them to levy the Service Charge on the charity too…. u know…

Vinaya H S May 25, 2011 at 2:17 PM


Wow! Seriously crazy outfit.

Even the BIG retail chains try and con you on this. They’ll silently add a rupee to your bill unless you ask them not to.

Anoop June 22, 2011 at 12:27 PM

Good Catch and Nice topic..Brilliant One

shovana jana June 25, 2011 at 10:23 PM

I think when it comes down to food thn nobody minds payin lil extra….coz its ol bout hunger n not anger…

jay November 19, 2011 at 11:55 AM

just had the same wierd experience yesterday only, it really feels pathetic and felt cheated when i came back home, also like to add they pizza is the item which carries VAT 14% and other food item in other restaurents carries 5%, and that service charges are bullshit, 10% is too high to serve a customer, they should have mention this earlier, many will exit with the entry

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