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TCS on discount received on purchase of new car.

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sandeep

Manager

36 Points Posted on 10 August 2021

We have purchased a new car and received a discount on ex-showroom price. Car vendor raised invoice and applied TCS on discounted value. But after that he raised additional Debit Note for TCS on discounted value. Our question is whether the debit note is acceptable or not.

Replies (3)

Quick Summary

A recent car purchase involved a discount on the ex-showroom price, with the vendor invoicing and applying TCS on this discounted amount. Subsequently, a debit note was issued for TCS on the discount itself. The core question is whether this additional debit note for TCS on the discount is legally acceptable. The consensus is that TCS is not applicable on the discount amount received.