Service tax rules for discount received after payment

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Kindly give suggestion to below mention situation with service tax rules / section no / Case Law

Mr. A paid Rs. 110.30/- (cost +St) to Mr. B on 30-06-2011 for some service rendered by Mr. B There after on 20-07-2011 Mr. B gave discount of 25% to Mr. A for the above payment.

 

Mr. A is eligible the discount from Mr. B for the Cost of Rs. 25 or the Cost + ST 27.58 (25 + 2.58)

Mr. A is eligible the discount from Mr. B for Rs. 25 or Rs. 27.58

Replies (1)

such discounts .after finalization of service tax between both provider and receipent ........... and after raising invoice and getting payment is .............."interest of advance payment" and such interest is to be added in taxable value of services.

https://www.cbec.gov.in/excise/cx-circulars/cx-circulars-98/404-98-cx.htm


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