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There's no mention about components in spellcasting service. I only found this:

Acolyte Background
A character possessing the acolyte background requesting spellcasting services at a temple of his or her faith may request one spell per day from the Spellcasting Services table for free.
The only cost paid for the spell is the base price for the consumed material component, if any.

Does the character need to provide components when using spellcasting service? If not, then is providing component entitles the character to a discount to the service?

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No

The price for the components are included in the service cost. The Acolyte background includes that clause as it still does still require the cost of the consumed components (although the service costs and any additional fees are ignored).

You can find some details for the equation for spellcasting services that Adventurer's League likely uses in this answer on a related question.

You won't get a discount for providing the components in Adventurer's League as no rules allow it (it also appears that the spellcasters charge twice the rate for tendering or handling the material components according to the equation linked above). Spellcasting Services have the listed costs in accordance to the Adventurer's League rules.

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  • \$\begingroup\$ @KorvinStarmast does that do enough? \$\endgroup\$ Commented Apr 26, 2018 at 17:56
  • \$\begingroup\$ @KorvinStarmast I don't know if it's a dupe, but definitely related \$\endgroup\$ Commented Apr 26, 2018 at 18:03
  • \$\begingroup\$ Yes, that support/link I think is helpful, dupe or no dupe. \$\endgroup\$ Commented Apr 26, 2018 at 18:04
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No, the component is part of the price of the spell

Note that the rule you quoted said that the cost is for:

the base price for the consumed material component

The party does not have to provide the material components for the spell, that is what the money is for.

The rules don't give a discount, but the DM may allow it

There are no rules saying that providing the spell component entitles one to a discount however. This would have to be a DM decision.

In AL play, there are no rules preventing this, but a DM would have to be careful because in AL, money and treasure are important balancing aspects of the game economy. However, the DM still has leeway to interpret unclear rules so this would still be their call.

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