How to calculate vat if we give discount

animesh.verma

I like to know in what amount we calculate vat if we are given some discount in invoice. It is on base value or value after discount.

Anuj Kumar Tyagi

Quote:

Originally Posted by animesh.verma

I like to know in what amount we calculate vat if we are given some discount in invoice. It is on base value or value after discount.

VAT will be calculated after discout . Suppose we purchase x in Rs. 10 and Discount Rate is 10% than 10-10%=9

Vat will be calculated on Rs. 9