Discounting of bill


This query is : Resolved 

(Querist)
23 November 2014 Please tell me what is rebate on discounting of bill?

23 November 2014 There is no rebate on bill discounting. First of all you should understand what is bill discounting. Once you raise the bill against sales the customer never pay on the spot or you have allowed credit for say 30 days so your payment is not received before 30 days. Now, you have discounted the bill from the bank by depositing the bill along with the transportation receipt. Now, after deduction of charges and interest Bank will credit the amount in your account.

The benefit of bill discounting is that you get immediate payment once the goods are booked in transport and the disadvantage is that if the party do not discharge the documents then the amount paid to you by the bank will be debited to your account with further interest.

Rupesh Jain (Expert)
25 November 2014 discounting of bill means you receive the amount less from the bill amount . like bank/discounting firm deducted the 2% of the bill then you received the amount 2% less from the bill amount.

01 December 2014 agreed......................................


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