https://www.taxtmi.com/caselaws?id=799096 Target-based and other manufacturer incentives received by an authorised vehicle dealer operating on a principal-to-principal basis are trade discounts or price adjustments, rather than consideration for a taxable service, where the dealer resells vehicles and parts for its own profit. Increased manufacturer sales are incidental, and meeting sales targets is only a condition for a discount unless the dealer assumes an enforceable, identified obligation in return. Section 66E(e) requires an agreement expressly obliging a person to do, refrain from doing, or tolerate an act, with consideration specifically linked to that obligation. Without that contractual nexus, incentives, support and reimbursements do not attract service tax or consequential penalties. en-us Fri, 21 Aug 2026 00:00:00 +0530 Thu, 17 Sep 2026 07:52:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799096 Target-based and other manufacturer incentives received by an authorised vehicle dealer operating on a principal-to-principal basis are trade discounts or price adjustments, rather than consideration for a taxable service, where the dealer resells vehicles and parts for its own profit. Increased manufacturer sales are incidental, and meeting sales targets is only a condition for a discount unless the dealer assumes an enforceable, identified obligation in return. Section 66E(e) requires an agreement expressly obliging a person to do, refrain from doing, or tolerate an act, with consideration specifically linked to that obligation. Without that contractual nexus, incentives, support and reimbursements do not attract service tax or consequential penalties. Case-Laws Service Tax Fri, 21 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799096