Tax On Liquor To Allow Set-Offs

The Centre is expected to give a significant tax break to the domestic liquor industry after bringing it under the ambit of tax collected at source (TCS) in 2003-04.

Liquor companies will be allowed to set off excise and other costs from the expected profit of retailers. Under Section 206CC of the Income-Tax Act, 1961, the companies are expected to recover the tax from liquor vendors at the rate of 10 per cent of the value of sale.

The notification will soften the impact of the amendment moved in the Finance Bill, 2003, by Finance Minister Jaswant Singh. The finance ministry