Hi Friends,
I hope many of u know about the incentive/backend practive in software industry.
in this situation we are purchasing the software at Rs. 100/- and we are selling it in Rs. 90/-. aftert that if we have purchased certain no. of units or certain amount we will receive cheque from software co. of Rs. 15/-. it means our profit is Rs. 5/-
now my question is " if my backend/incentive receipt is more than 10 lakhs we need to pay service tax or not ?
in my opinion it is a purchase rebate only on the basis of volume, what is ur view on it ? whether we need to collect service tax ?
please support ur answer with relevant proof or cases.
CAclubindia
