vat
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 February 2010
Suppose i am a dealer of computers.when i purchase a computer the invoice is like below
cost of the product=100
vat@4% =4
Total =104
the party from which i purchase gives me the 4% vat i.s Rs4/ as trade discount. I want to know whether this is correct or not.If not correct then what is the correct treatment.
cost of the product=100
vat@4% =4
Total =104
the party from which i purchase gives me the 4% vat i.s Rs4/ as trade discount. I want to know whether this is correct or not.If not correct then what is the correct treatment.
06 March 2010
Trade discount is not taxable. In this case a vendor may treat as under;
Substract the trade discount from basic sale value before applying VAT.
or
Issue credit note in reference to the original invoice.
Regards
K.L.Paliwal
Substract the trade discount from basic sale value before applying VAT.
or
Issue credit note in reference to the original invoice.
Regards
K.L.Paliwal
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