Discount Received is Turnover in Kerala
Strange, but true.
The Commercial Tax Authorities have been contending that discount received should be treated as turnover and that the dealer should pay tax thereon.
I am unable to find any provision in the Act or the Rules that supports the contention of the authorities.
Sec 2(xliv) defines “sale price” as the consideration received less any discount allowed.
Explanation III(ii) to Sec 2(lii) says that any discount allowed shall not be included in the turnover where such discount is shown separately in the invoice.