Trade & Quantity Discount

[CA.Mohammed Lakkadsha]

Post Negative Tax Regime ( After 01.07.12) Quantity Discounts or Schemes received by the dealers of Motorcycles from Principal Manufacture on Principal to Principal basis is taxable services and can be brought in purview of Services as Declared services.OR it is being purely related to Trading activity should be classified as Trading activity not Taxable under Service Tax.

AI Summary

Clarification Sought on Taxability of Motorcycle Dealers' Quantity Discounts Post-01.07.12 Under Service Tax Regulations A query was raised regarding whether quantity discounts received by motorcycle dealers from manufacturers should be classified as taxable services or as a non-taxable trading activity under service tax regulations post-01.07.12. Two replies were received. The first response requested a clearer query for better assistance. The second response pointed out the confusion between Central Excise and Service Tax, suggesting that discounts are allowed from transaction value and advising the querist to clarify their query for an accurate response.