Cash discount accounting
This query is : Resolved
11 February 2016
hi sir, I am new to business and we are engaged in distribution business. we would like to offer cash discount to our buyers so please guide us how to take this discount given In our accounts. I.e. if I had raised invoice of Rs. 1,00,000/- and if my buyer dealer is giving payment within 7 days then I want to give 2% cash discount to him but if he is paying after offered period he is not liable to get this discount. so how should I generate invoice. in invoice itself I can't deduct that 2% because if he pays late then we can't revise invoice. And if I give discount after generating invoice then I should bare loss of Vat also on that 2%. kindly brief me how I should give cash discount. regards, Snehal Patel
Guest
Guest
(Expert)
11 February 2016
Dear Patel, What you may do is that once a customer pays within 7 days, you can give that discount in next sale and VAT can be paid on amount after reducing discount. If that is not possible, there is no way to save VAT on discount.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- Relief u/s Section 89
- REGARDING GST LIABILITY/....
- Specified Profession
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
