treatment of cash discount
This query is : Resolved
23 August 2009
Whether cash discount is deducted for making valuation under Central Excise Act, 1944.
what will happen if company deducts discount after charging excise duty in its Invoice?
what will happen if company deducts discount after charging excise duty in its Invoice?
05 September 2009
FIRST OF ALL WE MUST UNDER STAND THAT
CASH DISCOUNT IS DEDUCTED BY THE CUSTOMER FOR MAKING PROMPT PAYMENT. SUCH PAYMENTS ARE ALWAYS MADE ON THE BASIS OF INVOICES RAISED BY THE SUPPLIER, ie SAID DISCOUNT IS AN ACT OF POST SUPPLY.
THERE IS NO NEED TO MENTION / SHOWN CASH DISCOUNT IN THE INVOICE IT SELF.AS IT IS NOT KNOWN AT THE TIME OF SUPPLY THAT WHETHER CUSTOMER IS GOING TO MAKE PROMPT PAYMENT OR NOT.
AFTER GETTING PAYMENT, SUPPLIER CAN ISSUE CREDIT NOTE TO THE CUSTOMER FOR THE VALUE OF CASH DISCOUNT .
CASH DISCOUNT IS DEDUCTED BY THE CUSTOMER FOR MAKING PROMPT PAYMENT. SUCH PAYMENTS ARE ALWAYS MADE ON THE BASIS OF INVOICES RAISED BY THE SUPPLIER, ie SAID DISCOUNT IS AN ACT OF POST SUPPLY.
THERE IS NO NEED TO MENTION / SHOWN CASH DISCOUNT IN THE INVOICE IT SELF.AS IT IS NOT KNOWN AT THE TIME OF SUPPLY THAT WHETHER CUSTOMER IS GOING TO MAKE PROMPT PAYMENT OR NOT.
AFTER GETTING PAYMENT, SUPPLIER CAN ISSUE CREDIT NOTE TO THE CUSTOMER FOR THE VALUE OF CASH DISCOUNT .
Message likes :
1 times
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Opting our of sec 44AD
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Multiple trade mark
- FORM 26A APPLICABILITY
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
