banner_ad

vat

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
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.
Profile Image

Kishanlal Paliwal

Profile Image

Kishanlal Paliwal (Expert)
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI
ChatGPT Perplexity Claude Google AI Grok

CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details