VAT / CST applicable before Trade Discount or after Trade Discount.
Example 1. Total Sale + VAT / CST - Trade Discount = Net Sales
2. Total Sale - Trade Discount + VAT / CST = Net Sales
Please Explain the Correct Method
3 Replies
Devendra
(Chartered Accountant)
(4780 Points)
Replied 26 December 2012
In the case of Trade Discount, VAT is calculated after deducting Trade Discount whereas in case of Cash discount, VAT is calculated before deducting Cash Discount
Regards,
Devendra Kulkarni
CMA RAVI
(ASSISTANT MANGER - FINANCE)
(478 Points)
Replied 26 December 2012
Of course option 2 is the key.
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