In India, GENERALLY tip is paid for 2 things- First is to get the work done and the Second is for a well done work/ job. Well you will have to find a balance between the two. Tipping is a common practice in India and is good to tip as per your wish if you are happy with the service. We advise to give a tip to the room boy or waiter as and when you check in. This will be very beneficial for you as you will get the great service you expect. At the end of your tour the car driver also expects a tip. If you are happy with his services, behavior and the promises made to you were kept then yes tip him.
We would again say that the amount is purely your wish and it can vary from 100 rupees (about 2 -3 $) to any amount you wish. In good restaurants generally the tip is 10-15 % of the bill amount. These days some restaurants have started adding 10-15% service charges in the bill, there you don’t pay tips. For potters on railway stations/ bus stands, always fix the price before you allow them to carry your bags. It generally depends on the weight and a 20kg bag could cost you anything between 50 – 150 rupees (2- 4$). Don’t forget to tip few rupees to the people of whom you take pictures like elephant or camel owner, snake charmer etc. We advise to always keep small change to tip people like cleaners, who guard your shoes when you go temples etc.