banner_ad

Incentive or Bonus whether taxable under VAT

This query is : Resolved 
Profile Image

Profile Image

(Querist)
25 April 2008 My client has received an incentive for early completion of project under the works contract. The Incentive was announced in the contract when it was entered and now it has been determined. Whether there will VAT on this amount received. Accoring to me it should not be brought to tax under VAT. It is neither a sale of goods nor a service under service tax. It is laible only for income tax.
Is my understanding correct.
Profile Image

CA Hemant T Dewani

Profile Image

CA Hemant T Dewani (Expert)
25 April 2008 if you client is complete the work in time then he got incentive from his client then it is treated as income and liable to income tax only
Profile Image

CA. Kirti S. Ganatra

Profile Image

CA. Kirti S. Ganatra (Expert)
25 April 2008 No VAT will not be payable.
Profile Image

Taxguy

Profile Image

Taxguy (Querist)
26 April 2008 Thank you Hemant and Kirti.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details