Sales incentive

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 June 2013 Whether sales incentive or target incentive received by automobile dealer from company is chargeable to service tax. Plz provide some case laws or any other support as my client is treating it as purchase discount.

21 June 2013 If you give it a term namely incentive, it appears that some service is rendered by the dealer, hence chargeable.
On other hand, if you simply termed it as discount, proposition changes. If you could prove on facts and evidences that the amount received is purely in the nature of discount and not as incentive, you may go for non taxability. However it would be hard enough to give such proof.

22 June 2013 There is no service in this transaction..

It is in the nature of trade discount

Thanks & regards
Ganesh babu k


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