Recently Union government had announced levying Service Tax on the License Fees of Liquor Business of Telugu States. That would affect the liquor business of the state governments as there is additional burden on the states. Andhra Pradesh government is thinking on the lines to limit the licenses fee and compensate the loss from Additional Excise duty.
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However Telangana government instead of changing the entire system is planning to bypass it with a shortcut. The government has sought the help of top tax consultants to replace ‘licence fee’ with any other term so as to bypass the service tax of the Center. The Union government’s Service Tax will come in to effect from July 1st.
The licences of various Liquor businesses have expired on June 30, but the state government has extended the deadline by three months to buy time. Lets see if KCR proves to be more intelligent than Modi in this aspect!
