Can Incentives provided to dealers for selling of products can be reduced from Sales Income? Whether any AS restriction exist?
suja nair
(Finance)
(61 Points)
Replied 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)
(56 Points)
Replied 04 June 2011
if it is trade discount thebn reduce from the sales...
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 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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