13 August 2017
A DEALER RECEIVED DISCOUNT RECEIVED FROM THEIR SUPPLIER VIA CREDIT NOTE IRRESPECTIVE OF PURCHASES INVOICES. FOR EXAMPLE A FMCG COMPANY GIVES A SPECIAL DISCOUNT TO THEIR STOCKIST FOR PERFORMANCE BASIS EVERY MONTH. I.E 50000/- FIRST MONTH NEXT MONTH 25,000/- WITHOUT ANY PERCENTAGE AGREEMENT. BOTH ARE REGISTERED DEALERS. WHETHER DISCOUNT RECEIVED AMOUNT AFFECT BUYER ITC? ITC REVERSAL APPLICABLE? WHAT IS THE RATE OF TAX? NOT AGAINST PURCHASES . BUT THIS DISCOUNT AMOUNT DEDUCTED FROM CURRENT INVOICE. PLEASE EXPLAIN.
13 August 2017
Is it in the form of credit note ? whether company is showing GST on the credit note ? Please share exact wording of credit note. N Jain group.blr@gmail.com
13 August 2017
Yes. The discount amount in the form of credit note. But say in various words. such as subsidy amount retail management amount but no agreement regarding this amount. Its purely nature of discount received without any claims by way of credit note. Upto june 2017 no tax effect. If july onwards didnt know the gst affect credit note. If the supplier not shown gst in our credit note what is the position of gst. Auto input reversed in our side. But this amount every month entered in our account books under to column of discount received.
CAclubindia
