Tonique Evades Tax on Liquor Products

 Hyderabad: The popular elite liquor outlet Tonique in upmarket Jubilee Hills and 11 outlets carrying the same name were found to be evading tax on products other than liquor sold there.

Tonique also was served notice by the state agencies for using the brand name for more than one outlet which is equivalent to forming a cartel. The licensees have been asked to remove the brand name Tonique from all other shops. While Tonique in Jubilee Hills was granted licence in the elite category, other outlets got licence in the A4 category through a draw of lots.

"The promoters of Tonique seem to be entering into a business understanding with the licensees and using the brand name which is against law," a senior official told Deccan Chronicle.

Sources said the state Goods and Services Tax (GST) officials raided the Tonique outlets on Tuesday and found that products like cigarettes, chocolates and other food stuff were being sold for which largescale tax evasion was noticed. While Value Added Tax (VAT) on liquor products was deducted at the source — the Telangana State Beverages Corporation Limited — other products come under the purview of GST.

Amidst speculation that a few powerful leaders in the previous Bharata Rashtra Samithi regime had protected the Tonique management, which has been served notices for unlawful business practices, senior tax officials like Special Chief Secretary Sunil Sarma and commissioner (commercial taxes) T.K. Sridevi were tight lipped about the raids and the outcome.

Sarma maintained that the commissioner would have more details. Sridevi did not respond despite several attempts to reach her for information.

As per the ministry of corporate affairs data Tonique Beverages LLP was owned by Anith Raj Laxman Reddy, Sai Silpa Anith Reddy and K. Bharati.