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No service tax on MRP items
Posted on: 10/Oct/2013 2:01:58 PM
Check the bill when you visit a restaurant and see that whether what you have been charged for soft drinks, bottled water and branded ice cream. All you have to pay for these items is the maximum retail price (MRP) marked on the product and nothing more – these products have been exempted from a 4.94 per cent service tax imposed by the Central government.
A recent clarification by the finance ministry said: “If goods are sold on the MRP basis (fixed under the Legal Metrology Act) they have to be excluded from the total amount for the determination of the value of service portion.”
The service tax came into force from April 1.
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