Will each deduction from invoice will be subject to service tax?
Price negotiations, reduction for quality differences etc. are very common in commercial word. In many cases, deductions are made on invoice itself without issuing separate debit note. Sometimes, Bill is passed for lower amount after certification from concerned authority.
Each such deduction cannot be treated as ‘tolerating an act’, without taking note of commercial realities.
Issue Credit Note instead of debit note – Instead of issuing debit note by recipient of service, it is advisable that supplier of service issues credit note to recipient of service.