Service tax on mrp goods

Respected Sir,

As per Circular No. 173/08/2013-ST, if goods are sold on MRP basis they have to be excluded from total amount for the determination of value of service portion. Now my query is that whether service tax would be applicable if liquor, mineral water etc are sold more than their MRP in restaurants and bar.

Thanks & Regards,

Ramesh Purbia 

Replies (7)
If the liquor, mineral water or any packed item is sold as such at MRP or any other value, then no levy of service tax. E:Mail me for more clarifications.

The definition of service exlcudes the transfer of property and therefore there would be no service tax levy on sale of any product.

Respected Madhukar Sir,

Yes, it would be outside the scope of 'service'. Additionally, it tantamount to 'trading of goods' which is covered under negative list.

Regards,

Manoj Agarwal

Thanks lot for for your valuable suggestion......

Thank u sir Karthik

Sir,

I am auditing in a liquor bottling plant , my question is that whether service tax will be applicable on contract unit charges which is charged by the company from its brand owner for the preperation of per case. the goods are clear from the premises of bottler i.e our clients factory. our client is registered as manufacturer under excise and WBST Act.

@ Vinit Your client is manufacturing bottles and selling the same to the brand owner. No service tax on such activity.

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