GIST OF PROPOSALS OF AMENDMENTS IN AVAT (AMENDMENT) BILL, 2014
1. Part –II of the Explanation to clause (44) of section 2 shall be substituted as follows:-
“(ii) any amount allowed by seller of goods to the purchaser as cash discount or commission or trade discount at the time of sale of goods subject to the condition that such discount or commission is shown in the original invoice.”
“(ii) any amount allowed by seller of goods to the purchaser as cash discount or commission or trade discount at the time of sale of goods subject to the condition that such discount or commission is shown in the original invoice.”
2. Clause (c) of sub-section (1) of section 13 shall be omitted.
3. New sub-section (3) will be inserted in section 13, which will read as:-
“(3) Notwithstanding anything contained in this Act, if after issuing invoice, any amount is allowed by a selling dealer to a purchaser as cash discount or commission or trade discount or sales incentive or otherwise and such amount is adjusted through credit note issued by such selling dealer to the purchaser or by any other means, the selling dealer shall not be allowed to reduce his output tax liability on account of such deduction".
“(3) Notwithstanding anything contained in this Act, if after issuing invoice, any amount is allowed by a selling dealer to a purchaser as cash discount or commission or trade discount or sales incentive or otherwise and such amount is adjusted through credit note issued by such selling dealer to the purchaser or by any other means, the selling dealer shall not be allowed to reduce his output tax liability on account of such deduction".
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