Service tax on rebate & discount received from suppliers

This query is : Resolved

Guest

Guest (Querist)

23 May 2014 Dear expert,

I want to know whether service tax will be attracted on rebate & discount received (shown under the head other income in books) from the suppliers of goods; however no tds has been deducted by the suppliers on rebate and discount given.

Annu Agarwal

Annu Agarwal (Expert)
Follow

23 May 2014 no service tax is payable on discounts and rebates.

Message likes : 1 times

Guest

Guest (Querist)

23 May 2014 Thanks Mam,

Do you have any supporting for the same.

Upgrade to CAclubindia Pro. Subscribe Now!

Annu Agarwal

Annu Agarwal (Expert)
Follow

24 May 2014 If the discount received by you from supplier of goods is in nature of trade discount then no service tax ,as there is no service rendered .

Message likes : 1 times

Guest

Guest (Querist)

26 May 2014 Thanks Mam,

But my question is regarding discount other than trade discount.

Annu Agarwal

Annu Agarwal (Expert)
Follow

26 May 2014 Please confirm whether you are a commission agent or a trader or a manufcturer.And on what transactions you get discount.

Guest

Guest (Querist)

26 May 2014 Mam,

We are engaged in manufacturing and trading of goods and get rebate & discount from suppliers.

Annu Agarwal

Annu Agarwal (Expert)
Follow