Query on Service tax & VAT. Is it chargeable on discount
I hv booked apartment with the builder prestige. Initially they hv chrged higher price. After my frequent follow up they give discount in June 2018. When I asked net off the service tax and VAT on discount they are not ready to give credit of service tax and VAT on discount amount. Any one knows what's applicability of service tax and VAT on discount. Is there any settled case laws of courts.what's applicability. ? Pls advise. more
AS PER RULE gst is charged on the regular price minus any discount as per regular practice but not on freebies, if it is as per regular trade practice then tax need to be calculated on gross less discount and tax on net value but pl note discount is as per trade practice and not icnluding any freebies. more
Now GST will be charged on the full value. Whether you give discount or have a sale with buy 2 & get 1 free, Government has nothing to do with that. GST will be charged on the first value before any deduction written. more
Dear Sr.Subramanian Please check whether the discount clause is mentioned at the time of agreement or not. If yes then you are eligible for the the VAT and service Tax,provided the agreement explicitely do not deny the benefit of VAT and ST. If it is not mentioned in the agreement and this is a discount offered suomotto then it is not elgible for VAT and ST refund. more
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By Ruchika L Maheshwari
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