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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Income from sale of coffee
Replies (5)
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.
Nope those rules are made for manufacturing purposes.General rule will apply in this case.
RULE 7B is not applicable.....
Good query.
Learnt from it !
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