Determination of taxable turnover of sale.

For the purposes of determining taxable turnover of sale, amounts specified below shall be deducted from the turnover of sale,determined in accordance with rule 7, if included in such turnover of sale :

(i) all amounts allowed as cash or trade discount at the time of sale as evident from the invoice;

(ii) Subject to provisions of the Act, all amounts allowed to purchasers in respect of goods returned by them to the dealer within six months from the date of sale of such goods:

Provided that –

(a) the selling dealer issues credit note to the purchasing dealer and obtains a debit note from purchasing dealer;

(b) the accounts show the dates on which the goods were sold and returned and also the date on which amount for which refund was made or credit was allowed;

(iii) all amounts realized from the sale by the dealer of his business as a whole;

(iv) in respect of non-vat goods, all amounts for which the dealer sells such goods after their purchase from inside the State;

(v) all amounts representing turnover of sale of goods exempt under the Act;

(vi) all amounts representing turnover of sales of goods where such sales are exempt from levy of tax in view of provisions of clause (c) of section 7;

(vii) all amounts representing the sale value of goods in respect of which the dealer has opted the scheme of payment of lump sum in lieu of actual amount of tax on turnover of sale of goods under section 6;

(viii) amount of tax payable on sale of goods by the dealer where such amount has been realized from the purchaser separately on a tax-invoice issued by the dealer;

(ix) In the case of a dealer other than a dealer to whom section 6 applies, where tax is payable in respect of a sale and the dealer is not entitled to realize or has not realized if entitled amount of tax from the purchaser separately, amount of tax computed using the formula:

Amount of tax = (Turnover x Rate of tax) ÷ (100+rate of tax) :

Provided that turnover of sales in cases of transfer of property in goods involved in the execution of a works contract and taxable turnover of sale of such goods; and turnover of sale and taxable turnover of sale in cases of transfer of right to use any goods, shall be determined in the manner provided under rule 9 and rule 10.