India: Treatment of trade discounts and GST, reimbursed employee-related benefits

India: Treatment of trade discounts and GST

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).

Related content

  • Is “trade discount” an eligible deduction under the model GST law? Courts have applied conflicting standards concerning the treatment of trade discounts for goods and services tax (GST) purposes. Read a September 2016 report [PDF 137 KB] that examines how the states have applied the GST to trade discounts.
  • Employee-related benefits reimbursed qualify as business expenditure: The Bombay High Court held that reimbursement of employee-related benefits (including retrenchment compensation and other retirement payments made with respect to employees of a transferred unit) are amounts paid for a business purpose, and as such, are an allowable business expenditure. The case is: The Wallace Flour Mills Co. Ltd. Read a September 2016 report [PDF 343 KB]

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