Income from sale of coffee

mehul rathod (article clerk) (24 Points)

19 December 2013

WHAT IS THE TAX RATE APPLY FOR SALE OF COFFEE AT RESTAURANT OR CAFE BAR ,IN THAT CASE RULE 7B OF INCOME TAX ACT 1961 WILL BE APPLY OR NOT ?

I.E. STARBUCKS, CCD

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5 Replies

GAUTAM SHARMA (Audit Assistant) (353 Points)
Replied 19 December 2013

Income Tax is a personal Tax, where as Sales Tax/VAT is a indirect tax levied on sale of goods.

Sale of Coffee will attract VAT and service Tax as resturant is not only providing Coffee, rather it is providing service also.

Rule 7B of Income tax rules will apply when we computes the income of BAR or other.

CA. Kuldeep Singhi (Entrepreneur) (424 Points)
Replied 19 December 2013

Nope those rules are made for manufacturing purposes.General rule will apply in this case.

Shruthi (Article Assistent) (336 Points)
Replied 19 December 2013

RULE 7B is not applicable.....

Akshay Kapoor (Student CA Final ) (34 Points)
Replied 20 December 2013

Good query. Learnt from it !

GAUTAM SHARMA (Audit Assistant) (353 Points)
Replied 21 December 2013

Plaese don't make any comment which may heart some one feeling.We are professional , behave like professionals

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