We are into car dealers. We are entitle for whole sale corporate incentives. Example. ABC is a Maruti Dealer. ABC achieves there whole sale targets. ABC is entitle for Corporate Incentives from Maruti(Principal Car Manufacturer). As per terms and conditions Maruti credit relevant amount in the dealer inventory account. The dealer, ABC, does not get any money in their bank account. The dealer will be able to pick up extra car of the incentive. Whether the delaer is liable to pay service tax on the corporate incentive amount.
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