Service tax on gross value or discounted value
This query is : Resolved
06 August 2014
Dear All,
Plz confirm is service tax to be charged on gross value or on value after discount
Let's say
Gross Value of Service(Advertising expenses ) is Rs.100.00
Discount on th bill 10.00
Net amount 90.00
Now, service tax has to be calculated on Rs. 90 or on Rs. 100 ??
Please clarify.
Regards
Aditya
Plz confirm is service tax to be charged on gross value or on value after discount
Let's say
Gross Value of Service(Advertising expenses ) is Rs.100.00
Discount on th bill 10.00
Net amount 90.00
Now, service tax has to be calculated on Rs. 90 or on Rs. 100 ??
Please clarify.
Regards
Aditya
CA UMESH DULAL
(Expert)
06 August 2014
On 90
06 August 2014
please provide the supporting materails if any also....
CA UMESH DULAL
(Expert)
06 August 2014
discount given as trade practice does not need justification. Discount is business practice so you do not have to pay service tax on this amount. Same principle is applicable in VAT/CST.
CA UMESH DULAL
(Expert)
06 August 2014
Each and every things need not to be justified by material/proof, you can use your common business practice for the same unless there is explicitly written on law/rule.
Rupesh Jain
(Expert)
06 August 2014
discount given by business practice and service tax charges on rs. 90 .
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