Question ID :
40375
GST
The party is covered under composition scheme and has received discount by way of commercial credit note which do not contain any GST on it. In 44AD do we have to pay tax @ 8% on sale price and discount value. Or we pay tax only on Sale price and credit Discount value in purchase. under GST do we have to pay GST on Sale price and Discount amount
Posted by
VIPIN GUPTA
on
Aug 29, 2019
Filed Under
GST
Answer ID :
80153
Under income tax, it is the total turnover or gross receipts, on which we have declare 8 % profit - section. 44AD. Under GST, only trade discount shown in the invoice is allowed to deduct fro sale value. Therefore, other discounts will be counted to get taxable value.
Posted by
CA PRADEEP C B on
Aug 31, 2019