Meaning of Rebate under Indian Tax

Posted on 10 June 2022 Category : Indian Tax Terms

What is Rebate under Indian Tax

This post explains about Rebate under Indian Tax.

REBATE

A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales. The mail-in rebate (MIR) is the most common. A MIR entitles the buyer to mail in a coupon, receipt, and barcode in order to receive a cheque for a particular amount, depending on the particular product, time, and often place of purchase. Rebates are offered by either the retailer or the manufacturer of the chosen product. Large stores often work in conjunction with manufacturers, usually requiring two or even three separate rebates for each item. Manufacturer rebates are sometimes valid only at a single store. Rebate forms and special receipts are sometimes printed by the cash register at time of purchase on a separate receipt or available online for download. In some cases, the rebate may be available immediately, in which case it is referred to as an instant rebate. Some rebate programs offer several payout options to consumers, including a paper cheque, a prepaid card that can be spent immediately without a trip to the bank, or even PayPal payout.

USES

Rebates are heavily used for advertising sales in retail stores. For example, an item might be advertised as "$39 after rebate" with the item costing $79 out-the-door with a $40 rebate that the customer would need to redeem. The turnaround time is generally four to eight weeks, though some rebates note a period of eight to twelve weeks. [Citation needed]

In the UK, rebates are less common. [citation needed] with manufacturers and retailers preferring to give discounts at the point of sale rather than requiring mail-in or coupons. However, rebates are sometimes given in the form of "cashback offers" for mobile phone contracts or other high value retail items sold alongside a credit agreement.

Rebates are commonly offered by retailers indirectly, through the use of a third party rebate or Cashback website.

This post describes about Rebate under Indian Tax. Comment below your thoughts about this post Rebate under Indian Tax.

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