How to compute tax vat, if tax exempted, discount as below

This query is : Resolved

Shyam (Querist)
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08 July 2012 Total Amount is Rs 100
Tax Exempted Amount is Rs 05 (out of 100)
Special discount is Rs 06 (out of 100)
VAT/CST is @5%

Please give the bifurcation....

It's urgent... pls help

RENGARAJ R.K

RENGARAJ R.K (Expert)
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10 July 2012 The normal working for calculating VAT is :

Total amount Rs.100.00
Less: Cash/Trade Discount xxx
Less: Special Discount xxx
-----
Net Taxable Turnover xxx

Add : VAT 5% xxx

In your query you have not mentioned the state the query relates. There are certain states, which do not allow any discount except cash/trade discount.

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