𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀 𝗮𝗻𝗱 𝗥𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗲𝗺𝗲𝗻𝘁 𝗢𝗳 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Incentives are discounts and not taxable services. Reimbursement of expenses cannot be subjected to service tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. S.K. Cars India (P) Ltd. 𝗜𝘀𝘀𝘂𝗲: Are incentives and reimbursements liable to service tax under BAS? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Dealer of Maruti cars, providing motor vehicle servicing, Business Auxiliary Service (BAS), and Goods Transport Agency Service.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: Incentives received for car sales qualify as discounts, not taxable under BAS (per BM Autolink). Reimbursed advertisement expenses are not subject to service tax, following Intercontinental Technocrats Ltd. The appeal was allowed, and the service tax demand and penalties were set aside.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. S.K. Cars India (P) Ltd. vs. Commissioner of GST & Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼.40681 of 2013 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 05 June 2023 📜 This ruling reinforces that incentives and reimbursable expenses are not taxable under service tax law.