Service tax on rebate & discount received from suppliers

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Guest

Guest (Querist)

23 May 2014 Dear expert,

I want to know whether service tax will be attracted on rebate & discount received (shown under the head other income in books) from the suppliers of goods; however no tds has been deducted by the suppliers on rebate and discount given.

Annu Agarwal

Annu Agarwal (Expert)
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23 May 2014 no service tax is payable on discounts and rebates.

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Guest

Guest (Querist)

23 May 2014 Thanks Mam,

Do you have any supporting for the same.

Annu Agarwal

Annu Agarwal (Expert)
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24 May 2014 If the discount received by you from supplier of goods is in nature of trade discount then no service tax ,as there is no service rendered .

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Guest

Guest (Querist)

26 May 2014 Thanks Mam,

But my question is regarding discount other than trade discount.

Annu Agarwal

Annu Agarwal (Expert)
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26 May 2014 Please confirm whether you are a commission agent or a trader or a manufcturer.And on what transactions you get discount.

Guest

Guest (Querist)

26 May 2014 Mam,

We are engaged in manufacturing and trading of goods and get rebate & discount from suppliers.

Annu Agarwal

Annu Agarwal (Expert)
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