cash discount treatment

if you are given discount after bill is issue then you will give treatment in p & l a/c if you are making bill before vat discount is given then you will charged vat after vat

f e                sales                  rs    10300

 less discount                                   300

net sales                                       10000

vat @ 4%                                            400

total amount                                  10400

Dear Hemant ,

But If I m  raising the invoice  of full amout & giving Discount at the time if delivery Og good by passing Credit note to customer , in this case should i cliam the Revarsal of vat tax.

Thanks

How we have to treat Cash discount in the case of calculation of VAT?

The VAT should be taken on gross bill or net bill?

Hi Sriram,

Mr.Hemant T Dewani has given how to calculate VAT. Please refer once again.

Subramanya
 

hi

The item rate inclusive of tax is 500 ( 5%  Tax )
 and if we give cash discount  of 25 %
 what is the calculation.....

Manoj