Allowability of provision for discount on debtors

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2015 Is provision for discount to debtors an allowable expense.If yes please provide section reference.

When Provision for expenses are allowed in Income computation??

Rajesh Kumar

Rajesh Kumar (Expert)
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04 November 2015 Discount to buyers is always allowed as deduction. If however it is writing off off bad debt, it has to satisfy requirement of Section 36(1)(vii).

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2015 Its just an provision not actual discount provided,still is allowed??
If yes please give reference of section

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