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Service Tax on Discount/Incentive received., Service Tax |
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Service Tax on Discount/Incentive received. |
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If one Partnership firm, is receiving incentive and disounts from various suppliers/manufacturers for acheving certain targets or eceives eraly payment Incentive or Trade discount or Rate diffrence, will the said firm is liable to Pay Service tax on such incentive/discounts under "Buisness Auxillary Services". Will the veiw will change after the applicability of Negative list method. Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
Please check Section 66E in this regard.
If incentive received is on account of trading on principal to principal basis , no service tax would be leviable as no service is involved. if targets incentives are given on principal to agent basis , tax would be payable..
Discount, commission or incentive received in relation sale of goods is a part of trading activity which is exempted from service tax. Page: 1 Old Query - New Comments are closed. |
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