Hotels and eateries to go on strike on April 29th
Posted on: 22/Apr/2013 2:31:54 PM
The Tamil Nadu Hotels Association (TNHA) has announced that there will be a nationwide strike on April 29th to protest the imposition of service tax by the Centre.
Speaking to the media, TNHA President M. Venkadasubbu said, ‘The TNHA had taken the lead to organise similar associations in all states in this regard and a federation, the Federation of Hotel Associations, had also been formed for the first time in the country.
‘The announcement of Service Tax was made by Finance Minister P Chidambaram in the Union budget and had already come into effect, beginning this month… (The) Service Tax of 12.36 per cent levied out of the 40 per cent of the sales proceeds (is) illegal and a big burden on consumers who are already forced to bear the brunt of price escalation due to inflation. While the hotels and restaurants were already paying VAT ranging from two to 14 per cent, the new Service Tax levied by the Central government would amount to double taxation.
‘This problem of double taxation was discussed at a meeting organised by the Federation of Hotel Associations (comprising office bearers and representatives of hotel associations from all states) in Mumbai last week and a unanimous decision was taken to launch a nationwide bandh if the Central government did not roll back the Service Tax.’
