Restaurants shut on April 29th
Posted on: 29/Apr/2013 3:28:00 PM
Most of the hotels and eateries in Chennai will shut their doors on April 29th to protest the extra tax on air conditioned restaurants. The Chennai Hotels Association is demanding the withdrawal of a tax of 12.36% that will be charged to these restaurants, and also the withdrawal of the Food Standards and Safety Act.
K.T. Srinivasa Raja, President of the Association said, With food being considered a product, value added tax was already being levied on its sale. The imposition of the service tax would only put affordable food out of the reach of the middle-class.
If a customer eats for Rs 100, he pays a VAT imposed by the state government, ranging from Rs 2-12.50. The service tax - which came in to effect from April 1 - would result in the customer coughing up an additional Rs 4.495. The Central government has no right to poke its nose into a transaction governed by the State. Due to this, customers get taxed twice.
