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suja nair (Finance)     03 June 2011

Netting off against sales income

Can Incentives provided to dealers for selling of products can be reduced from Sales Income? Whether any AS restriction exist?

 4 Replies


Harpreet (* * * * * *)     03 June 2011

How can it possible Dear???

suja nair

suja nair (Finance)     03 June 2011

I mean growth incentive given to dealers will form the nature of trade discount as those incentives are given for increasing the the volume. Trade discount are given for bulk purchase/sales likewise if sales  increased ,discount is given..

i know Incentives which are of fixed nature cannot be reduced form sales.


MANOJ SHRIPATI (CA FINAL)     04 June 2011

if it is trade discount thebn reduce from the sales...

Rajnikant Vadigoppula

Rajnikant Vadigoppula (CA, CS And CMA Final)     04 June 2011

incentives cannot be reduced from sales revenue it is charged to p&l a/c as sales promotion expenses

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