Discount
This query is : Resolved
26 August 2014
We have a client & the same is recording discount on Previous years Sale in this year due to the fact that approval is received in the current year.....
My question is that if the same would be allowed in the current year as per Accounting Standard & Income tax act point of View ?
Thanks & Regards
Anjana
My question is that if the same would be allowed in the current year as per Accounting Standard & Income tax act point of View ?
Thanks & Regards
Anjana
27 August 2014
Yes, this can be accounted as current year cost in accounts. However, if it is specifically termed as Discount for previous year sale, Income tax officer may litigate on this.
Hence, instead of disclosing the same as discount for last year, you can term it as additional discount given in the current year considering the performance of the last year.
Hence, instead of disclosing the same as discount for last year, you can term it as additional discount given in the current year considering the performance of the last year.
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27 August 2014
But if the debtors are maintained in tally Invoice no wise & the same is adjusted in the current period against previous year sale invoice than this adjustment in Tally will itself a proof for that it is for pevious year .....How can one avoid it
27 August 2014
Instead of adjusting it to previous year invoice, you adjust it to the appropriate oldest outstanding invoice in current year so that it will be discount for current year and debtors aging will also come down.
27 August 2014
if your discount debit note is current year then you can take claim otherwise its prior period exp.
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