CASH DISCOUNT AFTER SALE

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SIJU VARGHESE (Querist)

03 May 2010 Sir,

A Dealer of Electronic Equipments paid cash discount to his customer. The credit sale was in March 2010 and the discount allowed in April 2010.
My question is, whether the dealer can claim Tax credit on the "cash"discount?

Please reply

Thanks in Advance

Ram Avtar Singh

Ram Avtar Singh (Expert)

03 May 2010 its a business policy he will claim it current year when he is giving discount.

SIJU VARGHESE

SIJU VARGHESE (Querist)

03 May 2010 Sir actually my question is not about the period of sale & dicount. The quetion is about "cash" discount. I don't know whether the date will affect the matter, that's why I shown the period also.
Sir as per KVAT Act, cash discount is to be shown in Invoice. That indirectly meant that the cash discount after sale cannot be claimed.
Please verify this also and please reply.

Ram Avtar Singh

Ram Avtar Singh (Expert)

04 May 2010 Cash discount given to party for prompt payment. it is alloable at any time exps booked. but is is befour full and final settelment of customers.

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