Sale of MRP Products like PEPSI AND LAYS

[MUNIRAJ SRINIVASAN]

Service to customer place like Door Delivery

MY client has desired to sale of Combo Lunch it is inclusive of Lays and Pepsi whether service tax is applicable for MRP based Products?

he is selling Burger and Backery food along with Pepsi and Lays whether all products attract to Service tax

 

 

[Brijesh Verma]

The declared service u/s 66E(i) states:

service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.

Hence, the first and foremost condition here is that there should be an activity which comprises of supplying food or drink along with any other act which tantamounts to execution of a service. It is only on fulfillment of both these conditions that it will amount to a declared service.

As far as sale of items on MRP is concerned, the same should not be subjected to tax based on the D.O.F.No.334/3/2011-TRU

AI Summary

Service Tax Applies to Combo Meals with Burgers and Drinks, Not Items Sold at MRP, per Section 66E(i). A query was raised regarding the applicability of service tax on the sale of combo meals that include MRP-based products like Pepsi and Lays, along with burgers and bakery items. The response clarified that under section 66E(i), a declared service involves the supply of food or drink as part of an activity that constitutes a service. Therefore, such activities are subject to service tax. However, the sale of items at Maximum Retail Price (MRP) should not be subjected to service tax according to the specified directive.