Respected Sir,
I want to advice /suggestion on the following points
1. Whether services provided by the Dealer for registration of vehicles with RTO come under Business Auxiliary Services or not? Whether money charged from the purchaser of vehicle is wholly taxable or not?
2. Whether incentives/discounts received from the manufacturer of vehicles by the dealer for achieving a trade target is taxable or not?
With regards,
I. Neihsial, Siliguri
Are Vehicle Registration Services by Dealers Taxable? Exploring GST Implications on Incentives and Discounts Under CGST Act A user sought advice on whether vehicle registration services by dealers fall under Business Auxiliary Services and if incentives or discounts received from manufacturers for meeting trade targets are taxable. Respondents clarified that registration services are not taxable as they are statutory functions, provided fees charged align with government requirements. Regarding incentives, one respondent noted they are taxable under the CGST Act, while another highlighted that incentives, discounts, and subsidies have distinct meanings and should be considered separately for GST purposes. They advised reviewing relevant case laws for a comprehensive understanding of tax implications. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
