Vat

Sir trade discount is given at the time of purchase it is directly reflected on the face of invoice so VAT will be obviously charged on the amount after discount. Whereas in case of cash discount on the invoice discount is not shown that simply means vat will be charged on full amount and after that as per the terms discount will be given and adjusted through the ledger of the party. Correct me if i'm wrong, So i think there's a possibility for evasion of tax here because u may give discount deliberatily and charge less vat that discount can be recovered in some other way.