Discount related in bihar sales tax

Raju bhai (Querist) 12 January 2014 This query is : Resolved
We often give discount to the customers. I want to know about LAW on what value we have to pay discount ?

I have purchased a Tin of Mustard oil in
Rs: 1000.00 Per Tin.
Added my Profit Rs : 50.00 .Its landing cost became Rs: 1050.00 Per Tin .
Added Vat @ 5 % ( Rs: 52.25 ) then it became Rs: 1102.25 Per Tin.
Now We have to pay 2 % Discount to the Party. Let me know according to law on which Amount we can deduct 2% on Rs: 1050.00 or on Rs: 1102.25 ?

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Devajyoti Barman (Expert) 12 January 2014
You can give discount on the total price after adding all taxes.
Law does not bar you to give such discounts.

R.K Nanda (Expert) 12 January 2014
consult tax lawyer.

Rajendra K Goyal (Expert) 12 January 2014
Discount is the wish of the seller, he can give it as per his wish. He can give it at lower price also. VAT would be paid on net sale value 9Purchase +profit- discount), i.e. if after discount the price is 1025/- + VAT @5%

Rajeev Kumar (Expert) 12 January 2014
Agree with experts view specially Goyal sir.

BAALASUBRAMANNYAMM (Expert) 13 January 2014
You should calculate discount of 2% on purchasing price + profit only. You should not authorized to give discounts on payable tax amounts.

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