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TMI BlogService tax on discount allowedX X X X Extracts X X X X X X X X Extracts X X X X ..... A service provider prepares bill and charges service tax on "Gross amt." less "discount allowed"(disccount allowed(say 5% or 10%) is as per the terms of the work order.The payment is recd. on amt. including ser.tax charged .But the ser.tax authorities says that service provider has defaulted in not collecting service tax on discount amt. Now, as per service tax provisions ser.tax is payable on am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount actually recd. ,which he has paid to ser.tax dept. Whether there is any supporting case law /clarification were service tax is not liable to be paid on discount allowwed on bilss(on face of bills) by service provider? - Reply By Madhukar N Hiregange - The Reply = There is no such liability. It is improbable that case laws are there on such clear issues. Ask the officer to issue a written co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmunication and send the same to the CBEC + TRU + local Comm of CE or ST for clarification. - Reply By Mukesh Kumar - The Reply = It is the job of the service tax department to find fault into the acts of the assessee. Some time there job is not appreciable and some times there job is excellent. However, if they are not satisfied with your arguments and discussions, let the matter go the higher le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vel of appellate authorities. I think the matter would be solved at the appropriate forum. Personally I believe, that let us assume that department is correct, but on what amount they would raised a demand. The amount which is not collected? How? Let them do there job! - Reply By Surender Gupta - The Reply = you can also put a reference to the FAQ dated 5-2-2009 in which in para 7.1, CBEC has cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arified that: 7.1. Is the Service Tax payable by the assessee even in cases where his clients [recipient of service] do not pay for the service(s) rendered or when the client pays only a part of the bill raised in this regard? Service Tax is required to be paid at the rate in force (at present 12.36%) only on the value/amount of taxable service received in a particular month or quarter as the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be, and not on the gross amount billed to the client. [Refer to sub-section (2) of Section 67 of Finance Act,1994 / Rule 6(1) of Service Tax Rule 1994 ]. - Service tax on discount allowed - Query Started By: - sunil mehta Dated:- 13-4-2009 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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