Pls help ...... regarding discount !!!!!!

Discounts given in the nature of Trade Discounts or discounts given as a trade practice if passed on within 6 months from the date of invoice are to be considered as "Sale consideration" not received.

Hence such discounts passed on through the designated Credit Note as per VAT Act are exempted from sale and VAT.

kkm

I am not agree with KKM because there is 2 rule reg. discount:-

1. If it is shown in Invoice then tax should charge on net value (Discounted value) and if discount is not shown in invoice then tax would charge on total amount.

2. If tax invoice is issued and discount gives later on then tax'll not effect on discount amount because purchaser has already got input credit on the basis of tax invoice (full value).