Service Tax on Trade Rebates, backends, incentives received
This query is : Resolved
16 February 2009
Dear Sirs
What is the correct status on trade rebate, turnover discounts received from a distributor by a dealer is treated? Will it attract service tax payable by the dealer?
Also the dealer gets performance bonuses like free foreign trips based on his purchase targets - how this incentive/gift etc is treated under tax laws ? will it also attract a value as income and service tax and income tax payable on them, pl clarify
What is the correct status on trade rebate, turnover discounts received from a distributor by a dealer is treated? Will it attract service tax payable by the dealer?
Also the dealer gets performance bonuses like free foreign trips based on his purchase targets - how this incentive/gift etc is treated under tax laws ? will it also attract a value as income and service tax and income tax payable on them, pl clarify
15 April 2009
Service tax is levied on service rendered. Basically Business Auxilairy service include the services of the commission agent . As per my view the service tax is not payable on trade rebate, turnover discounts, performance bonus, etc. There can be implication of income tax but not service tax on such amounts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
