urgent query

Tax queries 520 views 6 replies

Is discount given to be treated as Commission under Clearing & forwarding service category???????

 

Pls help..........

 

Regards,

 

Seema

Replies (6)

Ms.Seema

If your question is dealt logically, you are paying the service provider the net amount i.e. after discount only.  And you are paying commission on the net amount or as per agreement.  Hence the discout allowed to you by your service provider for clearing and forwarding services is not a commision paid to him by you.

Best Wishes

Sathikonda

if the service provider allows discount after raising bills, ( not a short payment or payment deducted by payee) , another fact that if the discount is offered to any person other than payee, than its surely commission.

Thnx Sir,

This means that disount given is not commission??????

can u provide any case law or judgemnet in respect of dis??????

 

Thnax in advnce...

 

Regards,

 

Seema

Ms.Seema

Please go through the explanation to Section 194H of Income-tax Act, 1961.

I am herewith attaching a file which contains the judgement of Culcuta High Court.

Best Wishes

Sathikonda

i reffered dat sir,

 

but it is for income tax na??????? not for service tax????????

or same judgement apply on both d section?????????

Ms.Seema

I am not an expert in Service Tax Matters. 

Best Wishes

Sathikonda


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