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
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Tax applicability
Replies (3)
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
option 2 is Correct ...
Of course option 2 is the key.
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