Discount Received- can it be shown as direct income???

Mr. Kumar

If discount form the part of purchase say cash discount we can take as a direct income and can be shown in trading a/c. In case discount is in form of trade discount or discount on achieving certain TO or target it is forming part of indirec income . In your case U r the franchisee and U hav recd. MG discount - I feel that it is not a cash discount . U r doing purchase and sales on behalf of your principal, hence it should be indirect income. If Anyone has diff. opinion pl. let me know.