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McDonald's seeks Maharashtra nod for cash-memo exemption 

Sanjay Jog  
Mumbai, May 2: Mcdonald's India has asked the Democratic Front government in Maharashtra for an exemption from issuing cash memoranda to its customers at quick service restaurants. McDonald's India has demanded that such exemption as a "special case" should be given under section 47 of the Bombay Sales Tax Act 1959. Under this section issuance of cash memoranda for transaction exceeding Rs 50 is mandatory. McDonald's has so far set up 11 quick service restaurants (9 in Mumbai, one each in Navi Mumbai and Thane). It will open one such restaurant in Pune in the near future while seven more outlets are on the anvil.

The company secretary-cum-legal manager Shatadru Sengupta in a representation to the state government has said that McDonald's alone has over a short span poured in over Rs 100 crore into its India operations and it has made an additional investment exceeding Rs 300 crore, a good part of which has been within Maharashtra.

He has said that its employees are invariably hampered/delayed in their service of customers and in sales made by them. He went on to add that their customers had to wait till the completion of printing and later issuance of the cash memoranda. "This slows down and damages our business which is to be truly quick service in order to survive," he added.

Sengupta said that its customers at the quick service restaurants in various parts of the Maharashtra were not really concerned about receiving the cash memoranda for transactions exceeding Rs 50. "Many a time our personnel have been requested by our customers not to provide them with such cash memoranda."

Sengupta said that there is a reason for this as its menu prices are displayed prominently above sales counters."

Since the food is generally consumed after purchase, on the spot, there and then, or very soon thereafter, the cash memorandum is of no real importance to our customers," he added. Sengupta has explained that his company regularly pays sales tax and other duties.

"Our records of sales made, sales tax paid and sales tax returns filed are well maintained and we are justifiably satisfied with this record keeping," he added. Sengupta has explained that the quick service restaurants business is a very demanding one in terms of customer requirements for hygienic food served in less that a minute of waiting time per customer.The quick service business is very high paced and customer turnaround has to be practically immediate.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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