Discount & VAT

Sir/Madam,

In Value Added Tax what is the procedure to Make Invoice with Discount structure.

E.g. 1,

Basic  Rs. 100

Less: Discount 10% = 10

Add : VAT 4% (Rs.100-10= 90*4%) = Rs. 3.60,

Total Rs. = 93.60

                   (OR),

E.g. 2

Basic  Rs. 100

Add : VAT 4% (Rs.100*4%) = Rs. 4.00

 Less: Discount 10 %( (100+4)*10%=  10.40

Total Rs. = (104-10.40) = 93.60