Service tax on incentive from manufacturer
This query is : Resolved
18 January 2011
Dear All,
A & Co. is a authorised dealer of car & it purchase vehicle from its supplier and sale to its customer. In addition to the regular profit on sale of vehicle, A & co. also received incentive on monthly, quartely & yearly basis from its supplier which depends on achievement of sales target as decided and intimated by its supplier from time to time.
My question is whether such incentive received is taxable under service tax act and under which category.
Thanks & Regard
Anand Verma
Manager Accounts
A & Co. is a authorised dealer of car & it purchase vehicle from its supplier and sale to its customer. In addition to the regular profit on sale of vehicle, A & co. also received incentive on monthly, quartely & yearly basis from its supplier which depends on achievement of sales target as decided and intimated by its supplier from time to time.
My question is whether such incentive received is taxable under service tax act and under which category.
Thanks & Regard
Anand Verma
Manager Accounts
18 January 2011
it is taxable under Business Auxiliary services
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18 January 2011
Section 65 (19) of Finace Act, 1994
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