Vat on net sales after discount
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 August 2012
sir,
here one pvt ltd company selling goods to a trust at a discounted rate say 40%..if we sell rs.1000 goods after discount sales will b 600 .whether we have to calculate vat on 600 or 1000 rs? if there is any fixed rate is prescribed for giving discount at a certain rate or we can give any percent of discount on sales..so please kindly clarify doubts regarding this thank u
here one pvt ltd company selling goods to a trust at a discounted rate say 40%..if we sell rs.1000 goods after discount sales will b 600 .whether we have to calculate vat on 600 or 1000 rs? if there is any fixed rate is prescribed for giving discount at a certain rate or we can give any percent of discount on sales..so please kindly clarify doubts regarding this thank u
17 August 2012
Each state has prescribed the definition of taxable turnover for calculating the tax due. You have not indicated your STATE.
In general, cash discounts, trade discounts are allowed for deduction from the total turnover.
Therefore, if the discount allowed falls in the above category, then vat is to be calculated on Rs.600.00.
In general, cash discounts, trade discounts are allowed for deduction from the total turnover.
Therefore, if the discount allowed falls in the above category, then vat is to be calculated on Rs.600.00.
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