TaxTMI 
TaxTMI 
A service provider prepares bill and charges service tax on "Gross amt." less "discount allowed"(disccount allowed(say &5% or 10%) is as per the terms of the work order.The payment is recd. on amt. including ser.tax charged .But the ser.tax authorities says that service provider has defaulted in not collecting service tax on discount amt. Now, as per service tax provisions ser.tax is payable on amount actually recd. ,which he has paid to ser.tax dept. Whether there is any supporting case law /clarification were service tax is not liable to be paid on discount allowwed on bilss(on face of bills) by service provider?
Service tax on discount allowed
13 Apr 2009 
3 Replies 
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Service tax on amount received: tax attaches to the value actually received, not the gross billed amount.
Service tax is payable on the value of taxable services actually received in the relevant tax period, not on the gross amount billed; CBEC guidance confirms tax liability attaches to amounts received and not to discounts shown on invoices that are not collected. (AI Summary)
Service tax is payable on the value of taxable services actually received in the relevant tax period, not on the gross amount billed; CBEC guidance confirms tax liability attaches to amounts received and not to discounts shown on invoices that are not collected. (AI Summary)