https://www.taxtmi.com/caselaws?id=416977 A genuine trade discount recorded through credit notes may be deducted from taxable turnover under the Karnataka Value Added Tax Act, 2003, even if the discount was not shown in the original tax invoice. The Karnataka HC reasoned that taxable turnover must reflect the real commercial transaction and effective sale price, and that denial of deduction merely because the discount was omitted from the invoice would be inconsistent with that scheme. Applying the principle in Southern Motors, the disallowance of the credit-note amount was unsustainable and the deduction was allowed. en-us Thu, 25 Nov 2021 00:00:00 +0530 Thu, 13 Jan 2022 08:58:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=416977 A genuine trade discount recorded through credit notes may be deducted from taxable turnover under the Karnataka Value Added Tax Act, 2003, even if the discount was not shown in the original tax invoice. The Karnataka HC reasoned that taxable turnover must reflect the real commercial transaction and effective sale price, and that denial of deduction merely because the discount was omitted from the invoice would be inconsistent with that scheme. Applying the principle in Southern Motors, the disallowance of the credit-note amount was unsustainable and the deduction was allowed. Case-Laws VAT and Sales Tax Thu, 25 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=416977