Service tax

This query is : Resolved 

19 September 2015 sir
i am super distributor and i receive goods from company and I sell it to micro distributors and they sell it to retailers. In every month company fix my target and if i complete then company provides incentives to me. Is this incentive is chargeable to service tax. Please solve this query

19 September 2015 Yes it is chargeable to service tax provided it is exceeding 10 lacs per annum.

19 September 2015 But it is not that incentive which is given for sales increase. It is just like a discount. There is no principal agent relationship. It is just principal to principal relation we are dealers of company's goods.

19 September 2015 Then don't use the word incentive use quantity discount.

19 September 2015 This order is being passed in pursuance of order No.
A/1592/WZB/AHD/2011 & S/1204/WZB/AHD/2011 dated 06.09.2011 passed
by Hon’ble CESTAT, Ahmedabad in Order-In-Appeal No. 382/2010/
Commr(A)/CMC/RAJ dated 01.09.2010. The appeal alongwith stay
application had been filed by M/s. Shreenath Motors Pvt. Ltd., Gondal-
Ahmedabad Bye-Pass Circle, National Highway 8-B, Rajkot (hereinafter
referred to as the "Appellant") against Order-in-Original No. 45/JC/2009
dated 22.12.2009 (hereinafter referred to as the "Impugned Order") passed
by the Joint Commissioner, Central Excise and Customs, Rajkot (hereinafter
referred to as the "Lower Authority"). as per this case law there is no service tax
please clear

19 September 2015 No service tax applicable.


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