Service tax liability on discount/incentive

[Dashrath Patel]

Mr. x has a dealer ship of M/s.y company. At year end Y company has a issue a credit note for additional incentive payable on achieving quantum of business to Mr.X. Y Company has also deducted TDS u/s 194H. In such case whether Mr.X is liable for Service Tax or Not?. Please guide us.

AI Summary

Is Mr. X liable to pay service tax on incentive under section 194H? Clarification on trading goods only. A dealership representative, Mr. X, received a credit note for an additional incentive from Company Y for achieving a business target. Company Y deducted TDS under section 194H. The query is whether Mr. X is liable to pay service tax on this incentive. Mukund Thakkar advised that if the transaction involves only trading goods, service tax is not applicable. Mariappan Govindarajan requested clarification on the credit note's purpose, suggesting adherence to Thakkar's advice if it pertains solely to goods.