Accounting treatment of Discount offered on invoice
This query is : Resolved
RAJU CHANDAK
(Querist)
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.
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.
CA. B.SRINIVASULU
(Expert)
01 May 2009
Purchase price will remain same.
CST will reamin same.
The discount given by supplier has to be routed through accounts as follows.
Supplier A/c Dr
To discount received
(Being discount granted by the supplier)
CST will reamin same.
The discount given by supplier has to be routed through accounts as follows.
Supplier A/c Dr
To discount received
(Being discount granted by the supplier)
RAJU CHANDAK
(Querist)
01 May 2009
Consider CST rate being 2% agst provision of C Form to the party and discount is given is same way ... For what value C Form is read to be issued.....
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