Service tax on incentive by parent company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 December 2013
If a Parent Manufacturer gives incentives to dealers on sales scheme will it attract service tax or not
27 December 2013
Incentives given here may be of two types - (1) In the nature of reward
(2) In the nature of discount
Section 65B (44) provides that service means any activity carried on by a person for another for a consideration. In case if this incentive is treated as reward - there was no consideration when the activity was undertaken and hence no service as per Service Tax Act and consequntly no service tax.
However if we treated as discount, it would become normal trading activity and trading is in negative list - section 66D (e).
So either way incentive does not attract service tax.
(2) In the nature of discount
Section 65B (44) provides that service means any activity carried on by a person for another for a consideration. In case if this incentive is treated as reward - there was no consideration when the activity was undertaken and hence no service as per Service Tax Act and consequntly no service tax.
However if we treated as discount, it would become normal trading activity and trading is in negative list - section 66D (e).
So either way incentive does not attract service tax.
Message likes :
1 times
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
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Transporter Declaration form
- Copyright software
- Multiple trade mark
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- LC charges in relation to Asset purchased should be Capitalised ?
- Clarification on TDS Applicability
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
