VAT ON LIQUOUR IN RESTAURENT

[Ankit Bhansali]

From 1st October 2015 onwards, there is no change in the tax liability, in respect of liquor purchased from a registered dealer in the state. However, in respect of liquor brought or imported from outside the state, the restaurant would be liable to pay tax at schedule rate of 60% of the actual sales price but, subject to the limit of MRP X 30/130. Of course, in addition, the liability to pay tax at 5% of the actual sales price continues unchanged.

Can any one explain the meaning. Is we need to pay 60% of the actual sales price or MRP X 30/130 whichever is lower and 5% additional.

[DR.MARIAPPAN GOVINDARAJAN]

Which State?

[Ankit Bhansali]

IN MAHARASHTRA STATE CITY MUMBAI.

AI Summary

Tax on imported liquor: payable on lower of scheduled sales-based measure or an MRP-derived cap, plus an additional levy.
Liquor purchased in-state from a registered dealer continues under existing tax treatment; liquor brought in from outside the state is taxed on the lower of a scheduled percentage of actual sales price and an MRP-derived cap (MRP x 30/130), and an additional separate levy on actual sales price continues to apply.