The Indian Hotel and Restaurant Association (AHAR) has filed a writ petition with the division bench of Bombay High Court seeking the withdrawal of the 10.3 per cent service tax on liquor bill that is charged if a restaurant has air conditioning. Most eateries end up putting this charge on the client. In June, the Kerala bar association had moved court for the same reason, and was successful in getting a stay.
"Permit rooms are already charging VAT on liquor. The new taxation has led to drop in sales, as the bill amount has shot up," said Sudhakar Shetty, president AHAR.
Shetty revealed that in last seven months, city permit rooms have witnessed a drop in footfall and business has declined by 45 per cent.
Spotted: Alia Bhatt, Ranveer Singh, Neha Dhupia in Bandra
Photos: Salman Khan returns from Jodhpur to Mumbai
15 'peach' perfect photos of Priyanka Chopra at People's Choice Awards 2017
62 going on 16: These photos of Rekha prove she is 'forever young'
Photos: Tennis legend Andre Agassi meets Rahul Dravid in Mumbai