https://www.taxtmi.com/forum/issue?id=1532 Tax consequences of trade discounts hinge on whether the stockist A is the principal or only an agent. If A books sales/purchases and invoices B, the discount is part of A's trading account and input tax credit concerns are minimal. If the company sells directly to B and A only receives commission/discount, the company must treat the full amount paid by B as its taxable sale for VAT and A's receipt is commission income. The correct treatment depends on invoicing and accounting records. en-us Sat, 03 Oct 2009 20:36:00 +0530 Thu, 23 Jan 2025 15:58:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1532 Tax consequences of trade discounts hinge on whether the stockist A is the principal or only an agent. If A books sales/purchases and invoices B, the discount is part of A's trading account and input tax credit concerns are minimal. If the company sells directly to B and A only receives commission/discount, the company must treat the full amount paid by B as its taxable sale for VAT and A's receipt is commission income. The correct treatment depends on invoicing and accounting records. Discussion-Forum Income Tax Sat, 03 Oct 2009 20:36:00 +0530 https://www.taxtmi.com/forum/issue?id=1532