Can discounts offered on digital services be classified as revenue or capital expenditure?

Manju (Self employed) (4 Points)

22 March 2019  

Hi, my name is Manju. 

I am offering digital services like selling courses for competitive exams. I give volume-based discounts and other promotional discounts to the students.

Can these discounts be classified as revenue or capital expenditure?

If yes, then should they be classified as revenue or capital expenditure?

If classified as capital expenditure, then how to calculate the depreciation rate?

Thanks.