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TMI BlogWhen there is supply of Good and Services, Incentive/ Rebate invoice raisedX X X X Extracts X X X X X X X X Extracts X X X X ..... When there is supply of Good and Services, Incentive/ Rebate invoice raised X X X X Extracts X X X X X X X X Extracts X X X X ..... blishes that the taxable person himself confirm that they are issuing the invoices without any supply of goods or services. The taxable person issued the invoices on basis of the instruction received from his suppliers. Further, it is notice that the taxable person issued the invoices with Service Accounting Code 999799 which is used for "other services". The rate of tax for this SAC code is 18%. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this connection it would be prevalent to refer the definition of "service" under section 2(102) which is reproduced below for ready reference "Services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich a separate consideration is charged; As per the above definition of Service it can be understood that it excludes the "money" from service. In this instant case, the taxable person raises the invoice on rebate money offered by suppliers such as HP India Sales Ltd, Lenovo Private Ltd and Epson India Pvt. Ltd not any additional service rendered by him to said suppliers. It is only transaction i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n money which is reimbursed by his suppliers after affecting the sales by the taxable person to his customers. Hence, it clearly established that it is not supply of goods or services as per the section 7 of the act. It also understood that the taxable person receives the rebate amount in the form of subsidy or discount from his suppliers after affecting sales to his customers. For this, the taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble person adopted wrong procedure in course of business i.e the taxable person raised the invoices to his supplier for getting that rebate amount. In this connection, it would be prevalent to refer the section 15 of the act. Wherein, it is clearly mentioned that the taxable person should consider the subsidy or rebate amount which is reimbursed by his supplier while calculating the value of supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. But, the taxable person did not do the same and issued the invoices without adding the said amount in the value of supply. The relevant provisions are reproduced below for better appreciation. Reply By VENU K: The Reply: The issues are not clear from the question. 1. What invoice was issued by tax payer which is disputed by department ? 2. What is the product or Service ? 3. Why invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were issued for outward supply if discount was through financial credit notes. Was it at the instance of suppliers? Generally one can say that if an invoice is issued by the registered person asserting an outward supply and if the recipient accepts such assertion then the given logic by department is not enough to dispute such supply. The given instances are also not enough to prove that this i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s covered under Sec 15(2)(e) as subsidies directly linked. The department in either case has a burden of proof and it has not proved the same to unseat the self-assessment made. The department must prove that the supply was not made at a price which is paid or payable for the said supply of goods or services or both where the supplier and recipient of the supply are related and the price is the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ole consideration necessitating a subsidy. Without getting a full picture of the facts and circumstances of the case, it is not possible to give any opinion. These are prima facie views based on my understanding. Reply By KASTURI SETHI: The Reply: Only facts and circumstances explained. The query is missing. Reply By Shilpi Jain: The Reply: Such long queries should be avoided in the best int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest of the querist. X X X X Extracts X X X X X X X X Extracts X X X X
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