Service tax on gross value or discounted value

This query is : Resolved

CA Aditya (Querist)
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06 August 2014 Dear All,

Plz confirm is service tax to be charged on gross value or on value after discount

Let's say
Gross Value of Service(Advertising expenses ) is Rs.100.00
Discount on th bill 10.00
Net amount 90.00

Now, service tax has to be calculated on Rs. 90 or on Rs. 100 ??

Please clarify.

Regards
Aditya

CA UMESH DULAL

CA UMESH DULAL (Expert)
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06 August 2014 On 90

CA Aditya

CA Aditya (Querist)
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06 August 2014 please provide the supporting materails if any also....

CA UMESH DULAL

CA UMESH DULAL (Expert)
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06 August 2014 discount given as trade practice does not need justification. Discount is business practice so you do not have to pay service tax on this amount. Same principle is applicable in VAT/CST.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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06 August 2014 Each and every things need not to be justified by material/proof, you can use your common business practice for the same unless there is explicitly written on law/rule.