credit notes and sales incentives received by automobile dealer

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Sir Please guide the service tax liability on credit notes and sales incentives received by automobile dealer. - Reply By Himansu Sha - The Reply = Sales incentives will attract service tax. Credit notes if are towards sale of goods, there will be no service tax. - Reply By KASTURI SETHI - The Reply = Dear Sir,. I have no commerce background. What I understand credit notes are issued when you .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... make payment by any reason. Hence, it being not consideration, no question of liability of Service Tax. Debit Notes are issued to receive any payment later on after the receipt of the amount against invoice. Such may be by virtue of escalation clause in agreement or increase in rate retrospectively. It is additional consideration and covered under Section 67 (3) of Finance Act for the purpose .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of payment of Service Tax on that amount. So debit notes are covered under Section 67 (3) and not credit notes.Regarding Sales incentive, such incentive is by virtue of 'sale' and not 'service'. Hence no question of Service Tax liability on sales incentive. If incentive is on account of taxable service directly or indirectly or hidden in any way or in lieu of exchanging somethin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... g, then ST is required to be paid. - Reply By satbir singh wahi - The Reply = Thanks Sir . The audit party has accepted what you said as to sale incentive and credit notes. - Reply By KASTURI SETHI - The Reply = Welcome Sir. - Reply By Ganeshan Kalyani - The Reply = Sri Kasturi Sir 's reply is to the point and nails the issue. The querist problem is solved in a day. Thanks Sir. - credi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t notes and sales incentives received by automobile dealer - Query Started By: - satbir singh wahi Dated:- 7-4-2017 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X