Discount on vat sales

VAT (Legacy) 276 views 4 replies
if there's discount provided on vat sales. on which amount we need to charge vat (on amount before VAT or after VAT)
Replies (4)
if it is cash discount then on after vat value
if trade discount then on before vat value

Sir  trade discount is given at the time of purchase it is directly reflected on the face of invoice so VAT will be obviously charged on the amount after discount.

Whereas in case of cash discount on the invoice discount is not shown that simply means vat will be charged on full amount and after that as per the terms discount will be given and adjusted through the ledger of the party.

Correct me if i'm wrong

Sir  trade discount is given at the time of purchase it is directly reflected on the face of invoice so VAT will be obviously charged on the amount after discount.

Whereas in case of cash discount on the invoice discount is not shown that simply means vat will be charged on full amount and after that as per the terms discount will be given and adjusted through the ledger of the party.

Correct me if i'm wrong

So i think there's a possibility for evasion of tax here because u may give discount deliberatily and charge less vat that discount can be recovered in some other way.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details