St on liquor

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Manoj Chaitanya Varma

50 Points Posted on 03 February 2014

I want a clarification regarding service tax applicability on liquor.

sale of liquor is exempted from VAT. what about ST is it exempted or taxable??

i have read the notification but still not clarified so pls tell me if a bar or restaurent who only sales and serves liquor in an airconditioned, to its customers. Is Service tax payble by the bar shop owner regarding this sale and service of only liqour???

Replies (3)

CA Ashok Agrawal

Chartered Accountant

62 Points Posted on 04 February 2014

Originally posted by : manoj chaitanya varma
	I want a clarification regarding service tax applicability on liquor. sale of liquor is exempted from VAT. what about ST is it exempted or taxable?? i have read the notification but still not clarified so pls tell me if a bar or restaurent who only sales and serves liquor in an airconditioned, to its customers. Is Service tax payble by the bar shop owner regarding this sale and service of only liqour???

Yes if air-conditioned bar or restaurant which only sales and serves liquor to its customers is liable to service tax as it contains service element. Therefore Section 67 (1) (iii) read with rule 2C of Service Tax (Determination of Value) Rules, 2006 will apply. Accordingly 40% of total value would be taxable.

In case you need any further clarification feel free to contact at 07415795111.

Manoj Chaitanya Varma

50 Points Posted on 06 February 2014

what will be the liability in case of sale of liquor in a 3star hotel

CA Ashok Agrawal

Chartered Accountant

62 Points Posted on 06 February 2014

In case of bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises. taxable portion would be 70% of the total value. Refer notification no 26/2012-ST dated 20/6/12.