No offence taken at all. I know you're just looking out for this community.
Ok. I'll admit the staff did not explicitly mention that they will not give an invoice, but they told me that if I paid by cash, I would not have to pay the 10.3% service tax (VAT).
Now, this is possible ONLY IF the service provider (the clinic) is not declaring the cash income to the government and thus avoiding paying income tax on that amount. This is what we call black money. This can be done in two ways:
1. Accept cash payment and give no invoice.
2. Accept cash payment and give a 'token' invoice. In local parlance, we term this is a 'chaloo bill'. This bill will have the official letterhead of the company, and will mention the amount paid and will be signed by a representative. However, it will not stand up in any court of law as no service tax has been paid and the transaction has not been declared to the government. This practice is quite common among small businesses and retailers in India.
However, when an established ISO 9001 certified clinic dealing in a serious surgery such as hair trasnplantation asks me to pay in cash and avoid service tax, it sets alarm bells ringing in my head.
I am not insisting on cheques. I am ok with cheques/Demand Drafts/Wire Transfer or anything else that has a written and documented record.
Apart from my concerns about cash expressed above, also consider it is not safe to be tugging along a bagful of cash across India.
Sure thing. I'll email him as well. Will keep the community posted if I receive a reply on email instead of the forum.
Disclaimer: I am not alleging that Dr. Madhu's clinic IS indulging in unethical/unprofessional practices or/and evading tax. I am stating how it appears to the average consumer based on his business policies.