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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

05 November 2008 Why should he bill that way instead of billing at the net amount?

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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