This is an interesting case. Recently, the Service tax authorities issued notice to a service provider stating that the ""rebate"" he gets from Post Office is ""commission"" under Business Auxiliary Services and Service tax must be paid on the ""rebate"".
The question to be decided is whether ""rebate"" can be equated with ""commission"".
Second question is when the post office sue moto gives the rebate, from whom the service tax should be collected. The receiver of the rebate renders no taxable service to the post office nor does he issue any invoice.
Can anybody throw light on this?
S. Krishnamoorthy
