11 March 2010
I have one doubt - We are sealing software service to one reputed organization - normally we are allowing discount for that company. That also we are showing in Invoice Like Invoice issued Like below of Rs. 20000 Less: discount @10% Rs.2000/- Total Rs.18000-00 Tax Rs.1854-00 Total Payable Rs. 19854-00
But we are entering in books of accounts is Rs. 18000 and Tax amount only.
Friends tell me that is right method or otherwise we have to enter discounted amount entered in Books.
11 March 2010
Party A/c Dr. 19,854.00 Discount on Sales Dr. 2,000.00 To Sales 20,000.00 To Tax Ouput 1,854.00
Sometimes, the Assessing Officer demand to pay tax on the discount if not shown in the Books of account and in the Sales Tax Monthly Return, For the sake, we need to show,
But, shows the discount is very complicated, more complicated when the Sales Return takes place.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
12 March 2010
Thank you for your kind respones....
When IT market down fall we are agreed to give discount so, we are mentioning original price to show to client how much amount we are giving discount. Even we are getting income only what we have charged after discount.
12 March 2010
Dear Anonymous.....Invoice is enough.....no need to take in to books of accounts....sale consideration is the invoice value only i.e 18000/- plus tax as u said