https://www.taxtmi.com/forum/issue?id=106805 Vendor quality debits charged for substandard inputs without return may be taxable under the "agreeing to tolerate" declared service limb as consideration for tolerating a situation; that classification would attract service tax on the debit and preclude passing credit to the supplier. Alternatively, such debits may be treated as forced discounts (non-service), in which case no service tax or reversal of input excise credit would arise. The dispute hinges on whether the debit constitutes consideration for tolerating an act or is merely a commercial adjustment. en-us Sat, 17 May 2014 11:46:35 +0530 Thu, 23 Jan 2025 15:57:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=106805 Vendor quality debits charged for substandard inputs without return may be taxable under the "agreeing to tolerate" declared service limb as consideration for tolerating a situation; that classification would attract service tax on the debit and preclude passing credit to the supplier. Alternatively, such debits may be treated as forced discounts (non-service), in which case no service tax or reversal of input excise credit would arise. The dispute hinges on whether the debit constitutes consideration for tolerating an act or is merely a commercial adjustment. Discussion-Forum Central Excise Sat, 17 May 2014 11:46:35 +0530 https://www.taxtmi.com/forum/issue?id=106805