Service tax on cash discount recvd by consignee sales agent

This query is : Resolved

abhi (Querist)
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11 August 2015 Dear Madam/Sir,

Kindly clarify on the following.

A Consignee Sales Agent (Mr. CSA), receives commission from the Consignor (Mr. C) on the services he provides to the consignor. He pays serivce tax on the commission recieved.

In addition to this, the Consignor (Mr. C) gives a fixed percentage cash discount (by way of Credit Note memo) to Mr. CSA on every payment made by him within the stipulated time of the goods transferred by Mr. C to Mr. CSA, of the Goods Transfer Note value of goods.

Kindly let me know,whetherService tax is applicable on this Cash Discount.

Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2015 He is a consignee sales agent any amount received by him whether commission or cash discount liable for service tax being the payment received for service rendered.

abhi

abhi (Querist)
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11 August 2015 Sir,
Thanks for your reply.

The contract between the consignor(C) and the consignee (CSA) says that the cash discount is on advance payment only. In case the payment is not received on time, no cash discount is given.

What will happen in this case.

Thanks once again

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 August 2015 Cash discount is also on prompt payment service so service tax payable..

abhi

abhi (Querist)
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12 August 2015 Thanks a lot Sir.

Regards

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