Most Hotels In Anna Nagar Remained Closed

A majority of hotels and restaurants located in Anna Nagar Second Avenue, Shanthi Colony 4thAvenue remained closed on 29^th April 2013 to support the Tamil Nadu Hotels Association’s nationwide strike protesting against the imposition of service tax by the Centre.

The announcement of Service Tax was made by Finance Minister P Chidambaram in the Union budget and had already come into effect. According to the Tamil Nadu Hotels Association, the Service Tax of 12.36 per cent is a big burden on consumers. 

It is reported that 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. On Monday, 29th April 2013, restaurants and eateries in Chennai city were closed in support of their demand that the Central government withdraw the newly imposed service tax for air-conditioned establishments. 

K.T. Srinivasaraja, president of the Chennai Hotels Association, said that hotels was closed from 6 a.m. to 6 p.m. Srinivasan, secretary, Tamil Nadu Hotels Association, explained that the Centre was levying a 12.36 per cent tax. “For instance, if a customer eats say for Rs. 100, the State government collects Rs. 2 – 12.50 as value added tax. Now the Central government wants an additional Rs. 4.95. It is the customer who has to bear this amount.