credit notes and sales incentives received by automobile dealer

[Satbir singh wahi]

Sir

Please guide the service tax liability on credit notes and sales incentives received by automobile dealer.

AI Summary

Service tax on sales incentives may apply; credit notes for goods sales generally not treated as taxable consideration.
Sales incentives ordinarily arise from the sale of goods and are not service consideration and thus not subject to service tax unless they operate as consideration for a taxable service; credit notes reducing the price of goods do not attract service tax, while debit notes representing additional consideration are treated as taxable consideration under the finance law framework.