VAT in liqour

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30 October 2024 What is the statutory compliances for permit room,bar? Explain the taxes, rates,due dates,compliances etc

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 October 2024 Statutory Compliances
Licensing: Obtain a liquor license from the state government. This includes a trade license, business registration, and incorporation certificate.
FSSAI License: Ensure compliance with food safety standards by obtaining a license from the Food Safety and Standards Authority of India (FSSAI).
Fire Safety: Get a No Objection Certificate (NOC) from the state fire department.
Police Verification: Register with the local police department and obtain a police verification certificate.
Health and Sanitation: Ensure cleanliness and hygiene standards are met.
Entertainment Tax: Pay entertainment tax if live music or performances are provided.
GST Registration: Register for Goods and Services Tax (GST) if your annual turnover exceeds the threshold limit.
Taxes and Rates
Value Added Tax (VAT): The VAT rate on liquor varies by state. For example, Maharashtra recently increased its VAT on liquor in permit rooms to 10%.
Excise Duty: Pay excise duty on the purchase of liquor.
Entertainment Tax: Pay entertainment tax, which can vary by state and municipality. For instance, in Pune, permit rooms and beer bars with live orchestra pay ₹50,000 per month.
Due Dates
Licensing Fees: Pay annual licensing fees, which can range from ₹2.5 lakhs to ₹10 lakhs depending on the city tier.
VAT and Excise Duty: Pay VAT and excise duty as per the state government's schedule, usually monthly or quarterly.
Entertainment Tax: Pay entertainment tax in advance, often monthly.
GST Returns: File GST returns monthly, quarterly, or annually based on your turnover.
The compliances are indicative, but not exhaustive.