Service Tax on 'Amount of Discount'
This query is : Resolved
05 November 2008
Hi Experts,
If a Vendor raised a bill for a perticular service Bill amt. is Rs. 5000/- & given discount 35% on Rs:5000/- Then Amount(5000-35%)= 3250/-
Pls Tell me that on which amount Service tax will be liable.? Either on Rs:5000/- or after diduction of Discount i.e. Rs;3250/-
Thanks,
Vijay
If a Vendor raised a bill for a perticular service Bill amt. is Rs. 5000/- & given discount 35% on Rs:5000/- Then Amount(5000-35%)= 3250/-
Pls Tell me that on which amount Service tax will be liable.? Either on Rs:5000/- or after diduction of Discount i.e. Rs;3250/-
Thanks,
Vijay
S.Srinivasaraghavan
(Expert)
05 November 2008
Why should he bill that way instead of billing at the net amount?
Late CA Sampat Jain
(Expert)
05 November 2008
SERVICE TAX IS PAID WHEN THE AMOUNT IS RECD........SINCE YOU WILL RECEIVE NET AMOUNT ....YOU CAN PAY SERVICE TAX ON NET AMOUNT
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