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

CA.Varun Ranjan (Expert)
18 May 2009

Service tax would be charged on gross amount before discount.

CA.Hanumantha Reddy (Expert)
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.

CA Miss Naamah (Querist)
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.

Madhukar N Hiregange (Expert)
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

Similar Resolved Queries :

close x
Download GST App    |    x