PRODUCT DISCOUNTS

[Asked by Guest]

Dear Sirs,

I am a consignment agent for a Hyderabad based company, they transfer stocks to my company and i issue Form F for that value, my clients will deposit cash in my companies account and susequently I transfer product to them, now my company wants to give discount for the products, (for example I receive products for ₹ 36/- and issue form F for the same value now company wants to give discount of ₹ 6/- and asking me to raise invoices for ₹ 30/- can I do this or not please help me.

Kind regards

AI Summary

VAT discount rules: discounted invoicing requires a pre-announced scheme or documentation to avoid tax authority queries.
A consignment agent acting as an added unit may issue Form F, but when instructed to sell at a discounted invoice value the declared sale value governs sales tax liability. Discounts are generally acceptable if given under a pre-announced scheme or supported by documentation; otherwise discrepancies between receipt and sale values can prompt tax authority queries and require justification.