Dear Sir,
One of my clinent is getting incentives on sales of Car such as Target incentives, Annual Incentives, Balance Score Card ( after annual evaluation) and Cash Back Scheme ( discount offered to customers and getting back from company) . Besides sales of car it also runs workshop and getting labour charges which is taxable service. Please advise whether all the incentives mentioned above are taxable or not after introudction of Negative List.
Thanks and best regards
Debate on Taxability of Car Sales Incentives: Business Auxiliary Services vs. Discount Argument Under Negative List Regime. A client receives various sales incentives related to car sales, such as target incentives and cashback schemes, and seeks advice on their taxability under the Negative List regime. One response asserts these incentives are taxable under Business Auxiliary Services (BAS). Another highlights that the taxability is contentious, citing tribunal decisions where such incentives were excluded from service tax. A third response argues that incentives are discounts and should not be taxed, referencing several case laws supporting this view. The discussion reflects differing interpretations and highlights the complexity of tax treatment for sales incentives. (AI Summary)
TaxTMI 
TaxTMI 
