Vat on discount/ credit note

This query is : Resolved

Prasanna (Querist)
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03 February 2012 Dear Sir,

I want to know Karnataka Vat Liabilities in following cases:

Purchases Rs 1,000/-
Vat on Purchases @ 4% Rs 40/-

Trade Discount/Incentive/ Cash Discount/ Volume discount on purchases through separate credit Note Rs 50/-
Not vat Reversal by supplier in credit note

My sale Price Rs 975/-
Output Vat @4% Rs 39/-

Whether I can claim the refund of Re 1/-?

CA. Hari Kishan

CA. Hari Kishan (Expert)
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03 February 2012 We can make the application for refund of VAT. There is no bar on the sale price charged by the dealer which is why you have a refund situation.