credit notes and sales incentives received by automobile dealer

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....redit notes and sales incentives received by automobile dealer<br> Query (Issue) Started By: - satbir singh wahi Dated:- 7-4-2017 Last Reply Date:- 7-4-2017 Service Tax<br>Got 5 Replies<br>Service Tax<br>Sir Please guide the service tax liability on credit notes and sales incentives received by automobile dealer. Reply By Himansu Sha: The Reply: Sales incentives will attract service tax. Credit....

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.... notes if are towards sale of goods, there will be no service tax. Reply By KASTURI SETHI: The Reply: Dear Sir,. I have no commerce background. What I understand credit notes are issued when you make payment by any reason. Hence, it being not consideration, no question of liability of Service Tax. Debit Notes are issued to receive any payment later on after the receipt of the amount against invo....

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....ice. Such may be by virtue of escalation clause in agreement or increase in rate retrospectively. It is additional consideration and covered under Section 67 (3) of Finance Act for the purpose of payment of Service Tax on that amount. So debit notes are covered under Section 67 (3) and not credit notes.Regarding Sales incentive, such incentive is by virtue of &#39;sale&#39; and not &#39;service&#3....

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....9;. Hence no question of Service Tax liability on sales incentive. If incentive is on account of taxable service directly or indirectly or hidden in any way or in lieu of exchanging something, then ST is required to be paid. Reply By satbir singh wahi: The Reply: Thanks Sir . The audit party has accepted what you said as to sale incentive and credit notes. Reply By KASTURI SETHI: The Reply: We....

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....lcome Sir. Reply By Ganeshan Kalyani: The Reply: Sri Kasturi Sir &#39;s reply is to the point and nails the issue. The querist problem is solved in a day. Thanks Sir.<br> Discussion Forum - Knowledge Sharing ....