service tax on discount
This query is : Resolved
18 May 2009
A Company charges service tax on the services provided. Service tax is
paid to the govt as and when realised from the customers. At the end
of the year, Company allows discount to customers based upon the
quantum of annual business conducted with them, as applicable.
Will the service tax component on the amount allowed as discount be
also be reversed, as this amount will also not be realized from the
customers?
paid to the govt as and when realised from the customers. At the end
of the year, Company allows discount to customers based upon the
quantum of annual business conducted with them, as applicable.
Will the service tax component on the amount allowed as discount be
also be reversed, as this amount will also not be realized from the
customers?
18 May 2009
Service tax would be charged on gross amount before discount.
18 May 2009
Pls let me know whether you are giving discount on the sum amount already collected against the services provided or the discount portion is deducted from the subcequent bills.
19 May 2009
Billed amount has been recovered in some cases, and the discount allowed will be adjusted against the balance amount receivable. The discount is allowed if turnover crosses a particular limit and calculated bill-wise.
20 May 2009
ST is payable only on receipt. Therefore is a discount is given at a later point of time and subsequent payments are recived short then ST on those subsequent payments recived would be lower. ( discount cannot be added on tpo the receipts)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- Sales return eway bill
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Agriculture income or business income
- Loan by Partnership Firm
- Suggestions required for income tax filing-software (FY 2025-26)
- REGARDING GST LIABILITY/....
- STCG FOR GOLD ETFs
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
