TaxTMI 
TaxTMI 
Sir
Please guide the service tax liability on credit notes and sales incentives received by automobile dealer.
credit notes and sales incentives received by automobile dealer
07 Apr 2017 
5 Replies 
3221 Views Asked by
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. (AI Summary)
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. (AI Summary)