Business Auxilary Services

This query is : Resolved

B.Arulmani (Querist)
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07 March 2009 Dear Experts I would like to clarify my point

Recently there was a notice issued by Service Tax Dept. to the leading Computer Dealers to pay service tax on the payment received by them as discount received on purchase / Sales incentive / turnover discount.

In this instant case compu dealers are selling the branded products such as hp compaq, Lenova, ACer etc

They purchase the goods from the distributors, however they will receive the Purchase or turnover discount / Sales incentive directly from hp / lenova / acer

In this case i would like to know whether the anount received by the compu dealers by what so ever called will attract service tax under the head Business Auxilary Services or not?

If Bus Aux Ser is not attracted by Ser tax? to support this stand Is there any case law available ?

Kinldy clear my stand at the earliest

Rajesh Kumar

Rajesh Kumar (Expert)
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09 March 2009 There is no service tax liability. Sale and purchase, including margin of resale or trade discount or incentive for greate volume do not attract service tax.

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