Introduction
The retail sale of various motor vehicles, which include two wheelers, three wheelers, four wheelers, various types of passenger cars, commercial vehicles and tractors etc. is done in India through a large network of automobile dealers. The retail sale of vehicles is done by dealers on a principal to principal basis by engaging in retail trade (buying from O&M suppliers and willing to ultimate customers, such activities are trading activities for the dealers.
As a normal trade practice, in order to promote business, various sales promotion schemes are adopted and followed by the companies under which discounts and/or incentives called by different names are offered to the dealers who may or may not inturn pass it on to the customers based on their sole discretion / market competition.
Read more on: https://taxguru.in/goods-and-service-tax/gst-discounts-incentives-automobile-industry.html
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