Incentives and Registration

[IMMANUEL NEIHSIAL]

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

AI Summary

Statutory fees non taxable: vehicle registration charges are not taxable if only government fee is collected.
Registration services for RTO filing are a statutory function and are not taxable when the dealer only collects and remits the exact government fee; dealers must not charge more than the statutory fee. Incentives, discounts and subsidies from manufacturers require case specific analysis: discounts reflected by credit notes may reduce taxable value if GST is adjusted and the distributor reverses input tax credit, while subsidies directly linked to price may be treated as taxable under the valuation provision.