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TMI BlogIncentives and RegistrationX X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Sir, I want to advice /suggestion on the following points 1. Whether services provided by the Dealer for registration of vehicles with RTO come under Business Auxiliary Services or not? Whether money charged from the purchaser of vehicle is wholly taxable or not? 2. Whether incentives/discounts received from the manufacturer of vehicles by the dealer for achieving a trade target is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable or not? With regards, I. Neihsial, Siliguri - Reply By KASTURI SETHI - The Reply = Query-wise reply is as under:- 1. Not taxable. It is a statutory function. The dealer must ensure that he must not charge more than the fee required to be deposited with the State Govt. Go through the following case laws which contains Board's Circular No.96/07/2007-S.T., dated 23-8-2007 . This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular must be read carefully with the judgement. 2017 (47) S.T.R. 172 (Tri. - Chan.) = 2016 (9) TMI 588 - CESTAT CHANDIGARH SUKHMANI SOCIETY FOR CITIZEN SERVICES Versus C.C.E. S.T., CHANDIGARH 2016 (45) S.T.R. 182 (Tri. - All.) = 2016 (7) TMI 502 - CESTAT ALLAHABAD INSTRUMENTATION LTD. Versus COMMISSIONER OF C. EX. S.T., LUCKNOW 2017 (52) S.T.R. 429 (Tri. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Del.) = 2017 (3) TMI 1019 - CESTAT NEW DELHI D. PAULS CONSUMER BENEFIT LTD. Versus COMMISSIONER OF C. EX., NEW DELHI STRONGLY IN YOUR FAVOUR 2017 (52) S.T.R. 303 (Tri. - Del.) = 2017 (3) TMI 117 - CESTAT NEW DELHI SATNAM AUTO Versus COMMISSIONER OF CENTRAL EXCISE S.T., MEERUT-I - Reply By Ganeshan Kalyani - The Reply = Reply to query 1: It is government fees. If you c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harge exact amount of fees from the buyer then there is no tax. Reply to query 2: Discount is connected to the first transaction of supply of vehicle by the manufacturer to the distributor. While supply vehicle the manufacturer has to pay GST. On giving discount they can reduce the GST provided in the credit note issued to distributor has GST component. And the distributor has to reverse the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t tax credit already taken. - Reply By Ganeshan Kalyani - The Reply = In my view, incentive is taxable u/s 15(2)(e) of CGST Act, 2017 which states subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. - Reply By KASTURI SETHI - The Reply = The terms,'incentive', 'discount' and 'subsidy' convey the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent meanings and message. All these cannot be correlated for the purpose of payment of GST. Each case has different facts and circumstances. It is in the interest of the querist that he should go through all the above case laws word for word and then decide where his situation fits in. I do not rule out the possibility of legal benefit in the form of incentive. Case laws will be helpful i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n arriving at correct and concrete decision. Fool-proof solution cannot be provided on the basis of a simple query i.e. without going into the facts and circumstances of any case. Only guidance can be provided regarding in which direction one should go ahead. - Incentives and Registration - Query Started By: - IMMANUEL NEIHSIAL Dated:- 1-5-2019 Service Tax - Got 4 Replies - Service Tax - Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - 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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