Most of the restaurants in Maharashtra, Gujarat and other parts of western India remain closed today to protest imposition of service tax on fully and partly air-conditioned restaurants in the Union Budget.
The day-long strike has been called by Indian Hotel & Restaurant Association (AHAR).
"Around 20,000-22,000 restaurants and eateries remain closed to protest the additional service tax imposed on partly air-conditioned restaurants. The sweet shops also remain closed supporting us. Besides Mumbai, we are getting reports that the shutters remained down in entire Maharashtra," AHAR president Arvind Shetty said.
Gujarat, Tamil Nadu, Goa, Chhattishgarh, Daman and Kerala also supported the strike, he said.
As per the government's move, from April, fully or partly air-conditioned restaurants have to charge customers an additional 12.63 per cent on 40 per cent of their total bill as service tax and pay it to central treasury.
"This is in addition to the 12.5 per cent VAT. This move of the government is unjustified as service tax will now be applicable to all customers, including those in the non air- conditioned area," Shetty said.
He said, AHAR had made submissions to Finance Minister P Chidambaram to roll back the levy but there was no relief.
In Nashik, all restaurants and hotels remain closed to support the protest, Association of Bars, Hotels and Restaurants (ABHAR) president Sanjay Chavan said.
Aswhin Gandhi of Gujarat State Hotel Federation said, "The strike call got overwhelming response...Almost 20,000 small and big restaurants in Gujarat remain closed in protest of the service tax.
