Under WB VAT Act, is Cash Discount allowed to the dealer be deducted from the Value of Materials billed to the dealer from the Invoice itself and VAT payable on the Net amount of Material Value (i.e, Gross Value of Materials less Cash Discount= Net Value of materials on which VAT is chargeable) ?
2 Replies
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 01 December 2009
Generally these cash discounts are to be given in the body of the invoice else you cannot claim VAT Setoff and I Think this is universal for VAT of all states is my opinion
MITU....
(ARTICLE Assistant)
(210 Points)
Replied 01 December 2009
IN MY OPINION CASH DISCOUNT IS ONLY GIVEN WHEN THE CUSTOMER MAKES EARLY PAYMENT
SO IF BILL BOOKED IS LIKE THIS NET AMOUNT 1000
ADD VAT (12.5) 112.5
TOTAL 1112.5
NOW WHEN EARLY PAYMENT RECD OR CAS DIS GIVEN THEN IT SHOULD BE LESS FROM 1112.5
IN THIS CASE VAT SHOULD NOT BE AFFECTED
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