10,000 restaurants, hotels in the city to down shutters today

Apr 29, 2013, 01:24 IST | A Correspondent

Bandh is being observed to oppose state's decision to apply an additional 12.63 % on 40 % of the bill amount as 'service tax' in all partially or fully air-conditioned eateries

Don’t be surprised if your plan for lunch or dinner at your favorite restaurant falls through today. The Indian Hotel and Restaurant Association is observing a nationwide bandh, with most hotels and restaurants across the city deciding to down shutters to oppose a new tax.

The move is sure to affect residents of the city, especially office-goers and college students.  If members from the association are to be believed, nearly 10,000 restaurants across the city are expected to participate in the bandh.

They are opposing the Union government’s decision to levy an additional service tax along with VAT on restaurants that are fully or partially air-conditioned.

Official word
“From April 1, all fully or partly air-conditioned restaurants will have to charge an additional 12.63 per cent on 40 per cent of their total bill as ‘Service Tax’. This is in addition to the 12.5 per cent VAT.

This service tax will also be applicable to customers having food in the non-AC section,” said Arvind Shetty, president of AHAR. “We have appealed to all the hoteliers in the city to observe the day-long bandh,” said Restaurants and Hoteliers’ Association President Ganesh Shetty.

Earlier, a statement issued by Pune Restaurants and Hoteliers’ Association said that the state government’s decision amounted to double taxation, over and above the VAT. 

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