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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
19 August 2026
Chartered Accountant - Financial Consolidation & Reporting

Synergy Keystone

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details