trade discount

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Anar (Querist)
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03 August 2010 i just want to know whether the annual trade discount and scheme discount can be deducted from sales. Can u please show me that deducted along with example or any quoting from the institute guidelines

Rasesh

Rasesh (Expert)
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04 August 2010 If the discount is passed on in the form of a credit note, then yes, in the accounts finalisation, the sales should be reduced.

If the trade discount is passed on in each invoice, then in any case, it gets reduced from the sales.

The above is based on my day to day practical experience of handling such schemes