This is the fact:
(1) A proposal on levying 12 per cent service tax on food served in air conditioned restaurants has
evoked strong reaction from both the hospitality industry and customers. (In fact, when I visited the
famous HSB fast food joint yesterday, I saw a notice stating that 29-4-2013 will be observed as a
Bandh day to protest against this and also shortage of coins).
(2) Already public is paying 10 per cent VAT on food served in restaurants.
This is the reality:
It is a famous three star hotel very close to a more famous five star hotel in Chennai. My brother walks
in and has tiffin in the restaurant in which the AC is not working. Fretting and fuming he has his tiffin
and is given a bill for Rs.43 including taxes. (What exactly is the quantum of taxes in this case? Nobody knows!!).
He asks the server who doesn't know. He takes it in his stride and walks out of the hotel. Again getting curious he walks back and asks the receptionist who doesn't seem to know and in turn he calls the Manager. As my brother starts questioning him, he says the tax is 14.5% (!!) and quickly takes out a
hundred rupee note from his pocket (Mark: from his pocket) and asks someone to refund the money.
My brother is happy for the moment. I
I am not. And thousands who read this post will not be happy.
The point is: WHAT IS REALLY HAPPENING AROUND US?
(1) A proposal on levying 12 per cent service tax on food served in air conditioned restaurants has
evoked strong reaction from both the hospitality industry and customers. (In fact, when I visited the
famous HSB fast food joint yesterday, I saw a notice stating that 29-4-2013 will be observed as a
Bandh day to protest against this and also shortage of coins).
(2) Already public is paying 10 per cent VAT on food served in restaurants.
This is the reality:
It is a famous three star hotel very close to a more famous five star hotel in Chennai. My brother walks
in and has tiffin in the restaurant in which the AC is not working. Fretting and fuming he has his tiffin
and is given a bill for Rs.43 including taxes. (What exactly is the quantum of taxes in this case? Nobody knows!!).
He asks the server who doesn't know. He takes it in his stride and walks out of the hotel. Again getting curious he walks back and asks the receptionist who doesn't seem to know and in turn he calls the Manager. As my brother starts questioning him, he says the tax is 14.5% (!!) and quickly takes out a
hundred rupee note from his pocket (Mark: from his pocket) and asks someone to refund the money.
My brother is happy for the moment. I
I am not. And thousands who read this post will not be happy.
The point is: WHAT IS REALLY HAPPENING AROUND US?
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