𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 – 𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱: 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 𝗚𝗶𝘃𝗲𝗻 𝗯𝘆 𝗠/𝘀. 𝗠𝗮𝗿𝘂𝘁𝗶 𝗦𝘂𝘇𝘂𝗸𝗶 𝗜𝗻𝗱𝗶𝗮 𝗟𝘁𝗱. 𝗧𝗼 𝗗𝗲𝗮𝗹𝗲𝗿 𝗯𝗮𝘀𝗲𝗱 𝗼𝗻 𝗬𝗲𝗮𝗿𝗹𝘆 𝗦𝗮𝗹𝗲𝘀 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗻𝗼𝘁 𝗟𝗶𝗮𝗯𝗹𝗲 𝗳𝗼𝗿 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: Discounts based on yearly sales performance from M/s. Maruti Suzuki India Ltd. to the appellant are not liable for service tax.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: B M Autolink 𝗜𝘀𝘀𝘂𝗲: Discount received by the appellant from M/s. Maruti Suzuki is not subject to service tax under Business Auxiliary Service. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant buys vehicles from Maruti Suzuki and sells them, receiving discounts based on yearly sales performance, reducing prices.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that discounts and incentives from M/s. Maruti Suzuki India Ltd., based on sales performance, are not considered service charges. Citing Moped India Ltd. and Rohan Motors Ltd., the Tribunal held that these discounts, under principal-to-principal transactions, are not subject to service tax under Business Auxiliary Service (BAS).

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: B M Autolink vs. Commissioner of Service Tax – Service Tax 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 28 November 2022 📜 This ruling confirms that discounts or incentives related to sales performance are not subject to service tax when they are not linked to the provision of a service.