VAT

This query is : Resolved

Nirmal (Querist)
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20 August 2010 How is VAT generally charged before or after discount on sales suppose if its trade discount and if its normal discount

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010 If Discount shown in the TAX invoice then it is allowed

Nirmal

Nirmal (Querist)
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20 August 2010 My question is on what amount Vat will be charged I.e

if Invoice amount is 100 and discount is 5
will the vat charged on 100 or 95

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010 If the discount Rs.5 shown in the invoice itself then VAT will be charged on Rs.95

If the discount is not shown, given separately then VAT is chaged on Rs.100

Nirmal

Nirmal (Querist)
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20 August 2010 Thanks a lot. Now my query is actually one of our client is following diff method of accounting as below::

For sales made by them they charge VAT on Sales after discount

For purchase made by them they are being charge VAT before Discount

so,according to your reply i ll have to verify invoice rite ???

Nirmal

Nirmal (Querist)
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20 August 2010 we can adjust VAT input against CST payable rite ??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010 your 1st Reply is ok

We cannot adjust VAT input for payment of CST

Nirmal

Nirmal (Querist)
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20 August 2010 can i have your Email ID.because on of my client has done this and i am very knew to all this might need your help

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010 check your Private message, i provided

Nirmal

Nirmal (Querist)
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20 August 2010 i have sent you an gmail invitation if you can accept it ...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 August 2010 ok

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