01 May 2009
what should be accounting treatment if goods are purchased with vat/cst and same amount of vat/cst is shown as discount in the same invoice. For eg... Basic Price 100 CST 3 Total 103 Less Discount 3 Net 100 The discount is not in the nature of Cash discount.... We cannot treat this discount as trade discount as well.. as it comes after vat/cst calculation... Please let me know the repurcusion at the time of sale tax assessment.