The "TIPS"

The 'TIPS'

It is said that TIPS is an acronym for “To Insure Prompt Service”.   A myth has it that a coffee shop patronized by Samuel Johnson in London sported small bowls on the tables marked with – “To Insure Prompt Service” into which customers would throw a few coins.  The practice of TIPS evolved into one of unsavoured item at the end of a transaction.  There is no guarantee that Tipping would ensure good service; for the receiver would not know whether you would give one or not.  There is no connection between the quality of service received and the unwritten consideration given in return.  It is not a quid pro quo.  Wikipedia terms Tipping, as an over payment made as a recognition to those who provide service beyond the expectation.  The problem here is to know whose expectation.  In most cases you feel compelled to give one even without any service.

In United States, you are looked down when you do not leave behind something for the waiter.  There you are out of box when you do not give.  It is anything above 10% of the bill depending upon the level you want show off.  It has become customary and feels obligated though not obliged.  Tipping is not native of America.  It appears that this practice found its way from the taverns of Europe, particularly England, where drinkers started, probably in 17^th Century, leaving money to the waiter before leaving.   Though this practice is inevitable in US nowadays, it was not welcomed in the beginning.  According to a professor at the Cornell University School of Hotel Administration, tipping began in US after Civil War through the wealthy Americans who traveled Europe and brought the aristocratic custom with them to show off their elevated status.

There were reports that many Americans believed then that tipping would create a servile class.  Further, reports in newsprint revealed that this was considered as the “vilest of imported vices”.   In 1915, there was even an attempt to pass an anti-tipping bill that would have made leaving tips unlawful.  This attempt did not pass the muster.  There was a book by name “The Itching Palm” written by William Scott in 1916 wherein he had raised the subject of paying twice for the service rendered – once to the organisation that provided the service and second to the person involved in reaching the end customer.  He termed it as a “democracy’s mortal foe” and that creates “a servile attitude for a fee”.

For Japanese, it is an affront on their dignity.  The moment something is received as a gratis he loses his standing in society; the dignity is lost, because it is a one way transaction where there is nothing in return.  They do not TIP.

In India the story is completely different.  Many restaurants charge as a percentage of the cost of the items served as service charge.  In addition, the waiters also expect the customers to pay them.  It is a peculiar case where the customer has to bear 3 point brunt – Services Tax collected by the Government at a predetermined percentage on the value of services, Service Charges collected by the owner of the joint again as a percentage of the value of items provided though there is no legal sanction and the ubiquitous doling out as a parting shot.  The first one is by the government through legislation and hence no escape; the second one by the employer, though meant as a discretionary -  to be there you need to pay; and the third one, you are reluctant but do not like to picture yourself awkwardly before others and hence felt inescapable but to give in.  Except the first one, the other two definitely are for nonexistent additional services and should attract Income tax / service tax.  God knows whether due process is followed. 

Where else you will find this predicament, first a sovereign body, the private body – the organisation, collects twice for the same service – once when selling the goods and again during billing, and lastly when you leave you are made to pay for having visited!  In fact one has to pay four times by whatever name called for the same transaction.

What a situation?  Last but not the least; can corruption be called as a TIP to ensure service? – Why double standard?