Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: form 3cd :: VAT RATES :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: due date for vat payment :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARD
« Sales Tax »
 Amendment to Additional Sales Tax Act unconstitutional: High Court
 Maharashtra will soon achieve Rs one lakh cr sales tax : CM Devendra Fadnavis
 CBEC chief bats for minimal exemptions for India Inc under GST
 Issuance of Free Sale & Commerce Certificate to Merchant Exporters
 Why model GST law does not give confidence to exporting community
 State governments tighten their grip on sales tax holidays
 Income tax dept charts plan to broaden national taxpayer base
 Sale of shares on which STT is payable is exempt from tax
  Sale of Government of India Treasury Bills by Auction
 New tax treatment of sale of unlisted shares brings more certainty, less litigation
 Simpler tax laws, low rate can help get more people to pay up

Tax blow to tipplers
August, 14th 2008

The next time you visit your favourite watering hole for a drink, be prepared to gulp down a possible price hike, too.

The government has claimed a 20 per cent share of the profit on every peg sold by bars, restaurants and star hotels, but its the customer who could end up paying more.

The idea is to spare the poor and tax the rich. Thats why we have decided that bars, hotels, three and five-star hotels doing brisk business in foreign liquor should cough up more money in the form of sales tax. There shouldnt be any opposition to the move as the outlets are making huge profits, finance minister Asim Dasgupta said, tabling a sales tax amendment bill in the Assembly on Wednesday.

Till now, the government had taxed only manufacturers of India Made Foreign Liquor and importers of foreign brands at the rate of 20 per cent. Bars, restaurants and star hotels had all along been making profits that remained untaxed. They will now have to pay sales tax on profits, Dasgupta said.

What it means is that an establishment buying a peg of liquor at Rs 20 and selling it at Rs 80 will have to pay Rs 12, or 20 per cent of the price difference, to the government.

The finance minister said the additional sales tax would fetch Rs 50 crore annually. Everybody is aware that bars and hotels sell foreign liquor at a price that is at least four times more than the buying rate. So its only fair that they should contribute more to the state coffers in the form of a tax on profits.

Managers of star hotels in the city declined to say whether they would pass on the tax burden to the consumer. But a senior official of the finance department said upmarket bars and restaurants were likely to do so because they knew that their affluent clientele wouldnt mind paying a few rupees more for a drink.

Look at the status of people visiting these bars and star hotels. Would it matter to them if these establishments hiked the price of a peg of liquor by Rs 10-15? Whet we are concerned about is our revenue. We need more funds, which is what prompted us to introduce a sales tax on the profit of pubs, bars and restaurants, the official said.

Delhi had last year scrapped the additional customs duty of up to 150 per cent over and above the normal levy on wines and spirits, amounting to a concession of 25 per cent on imported liquor.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions