what would be the treatment of sale incentives received from supplier for purchases made from him during the year.
whether it can be recorded in accounts as income without any GST implication?
Menu
Treatment of sale incentive in gst
Replies (11)
if the incentive is discount no GST is applicable
post sales incentive/discount has to recoded in account with Credit note/debit note with GST.
No need...
Performance related Incentives or Discounts will be account without GST. No more restriction...
In case supplier move with GST then You can follow the same... 👍
Performance related Incentives or Discounts will be account without GST. No more restriction...
In case supplier move with GST then You can follow the same... 👍
sir whether there is any provision in this regard. if yes then please share it. Because i have heared from some one that any incentive recorded as income in books will be treated as supply and we will have to pay GST on it.
No provision GST applicable
GST not applicable...
Do what your supplier done : If in credit Note the GST is being charged , you cannot show the same in income .
But as a turnover secheme mostly are without GST , so can be shown to income side (because For one bill , one credit note can only be issue)
But as a turnover secheme mostly are without GST , so can be shown to income side (because For one bill , one credit note can only be issue)
same problem with one of my party he recieved incentives from company for post sales nearly 2 lakhs in vat regime and the vat department issued notice to him to pay vat
Yes you are right Mr Mahesh. I Aldo faced same problem in vat regime.
What is the solution whether we have to pay or not
In my opinion whenever you receive incentives on purchase from supplier then againt their credit note, you please issue debit note for GST to reduce your input in GST as applicable in VAT regime, then your supplier charged GST will take as input and by this GST is applies on incentive and there is no body is going to loose the sum and GST compliance also
Recent Topic
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
Related Topics
CAclubindia
