19 October 2020
is the credit note which is based on target achivement in sales is liable to tax?. for ex. if supplier agrees to give an additional discount of 4% if the customer purchases 100000/- from him in a month in form of credit note. should GST be applied on this discount amount. Also whether TDS is also applicable
19 October 2020
No, you can not include GST in credit note if this additional discount was not in agreement before delivery of goods. TDS is not applicable for discount given.
20 October 2020
Thank you Lekhraj ji. Just for my clear understanding, Supplier has provided scheme letter related to month target and additional discount mentioning in first week of the month. does this comes under the staement "additional discount was not in agreement before delivery of goods". Also, could you please give me a reference supporting my query. This would be a great help
20 October 2020
You must have given the PO/agreement to the supplier. Is it mentioned there? Can you share the agreement/PO and the scheme letter on lekhrsood@gmail.com
CAclubindia
