HII, RESPECTED EVERYONE
My client has running petrol pump business and whom have nayara agency, in nayara ledger to receipt i see first is a (HSD/MS) Product linked incentive and second is (HSD/MS) Channel Incentive, so i want to know that, is a revenue receipt or capital receipt and is a taxable receipt or non taxable in income tax,
Incentives received by a petrol pump dealer:
• Incentives from the oil company (Nayara) for meeting targets: taxable income (business income).
• GST: incentives that are price discounts or reduce the value of supplies by the oil company (petrol and diesel, outside GST) don't attract GST. Incentives for promotional services (e.g. branding, maintaining facilities) are consideration for services (18%). The nature of the incentive matters.
• Commission on petrol and diesel sales (if a commission agent) is a service, but most dealers are buyers and sellers.
CCI
Pro
CAclubindia
