Service tax on incentive from manufacturer

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anand (Querist)
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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

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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18 January 2011 it is taxable under Business Auxiliary services

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anand

anand (Querist)
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18 January 2011 Can you please tell me the section

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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18 January 2011 Section 65 (19) of Finace Act, 1994

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