Incentive or Bonus whether taxable under VAT
This query is : Resolved
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.
Is my understanding correct.
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
25 April 2008
No VAT will not be payable.
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