Military officials also imposed a curfew from 10 p.m. to 5 a.m. local time (11 a.m. to 6 p.m. ET), authorities said in a televised address.
And the military has ordered that the 2007 constitution be thrown out, except for Section 2, which acknowledges that the king is the head of state.
The developments are the latest in a chain of failed attempts to defuse tensions that have simmered since November. The discord has its roots in politics, and led both pro- and anti-government factions to fight over the country's leadership.
The military on Tuesday imposed martial law in an attempt to end the instability, but said it was not a coup. Now, it has taken power outright.
In a statement released by the military, it said the military chief, Gen. Prayuth Chan-ocha, now had the powers to act as Prime Minister until a new Prime Minister is in place.
The move came after rival factions were unable to come up with a suitable agreement to govern, the military chief said in a national address.
Hours earlier, members of the military and opposition parties met for a second day to try to find a solution to the crisis.
Members of the political parties involved in the talks were seen under military escort after the meeting. A lawyer for the pro-government "Red Shirts" confirmed that the military had detained the movement's leaders.
Gunshots were heard Thursday at the site in Bangkok where the Red Shirts have been protesting. A former national security chief described these as warning shots to get the crowd to leave.
In his address, the military chief told citizens that it should be business as usual. All civil servants and officials should report to work, he said, and anyone who has weapons -- such as police -- should not make any attempt to move those without orders.
The military also said it will provide security to foreigners, including vacationers and diplomats.
At the same time, the military ordered all state-run, satellite and cable TV providers to carry only the signal of the army's television channel.
It also announced that all schools in Thailand will be closed for three days, starting Friday.
U.N. Secretary-General Ban Ki-moon expressed concern over the military takeover.
"He appeals for a prompt return to constitutional, civilian, democratic rule and an all-inclusive dialogue that will pave the way for long-term peace and prosperity in Thailand," his spokesman said.
The people of Thailand are all too familiar with coups. Thursday's coup was the 12th successful military takeover since Thailand became a constitutional monarchy in 1932.
Source: CNN
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